Portal de Periódicos da CAPES

A cost function study of the providers of TVA power

1994; Wiley; Volume: 15; Issue: 1 Linguagem: Inglês

10.1002/mde.4090150108

1099-1468

E. Tylor Claggett,

Smart Grid Energy Management

Abstract This paper examines these TVA power distributor issues: distribution of nonelectric utilities, municipal versus co‐operative distributors, effects of high urbanization, marketing and customer recruiting (M&CR), conservation and load management (C&LM) programs, and service area boundary changes. A translog cost model is the basis for the analyses. The conclusions are: (1) TVA distributors experience electrical distribution inefficiencies when they distribute water and electricity, but when they also distribute gas, there are no additional effects; (2) TVA co‐operatives enjoy electrical distribution cost advantages over TVA municipals; (3) the TVA municipals that serve the five largest metropolitan areas of the Tennessee River Valley have the highest electrical distribution costs; (4) M&CR efforts benefit TVA distributors; (5) the many TVA‐sponsored C&LM programs produce varied fiscal effects for TVA distributors; (6) there are both diseconomies and economies to scale given proportional increases in output components brought about by hypothetical increases in TVA distributor service areas.