The model was originally developed for a western
utility to help planners think through strategies to achieve cash flow and
rate-making objectives. They adopted a long term perspective that looked
several decades into the future, and they were convinced that construction
cycles should be taken seriously.
These concerns led to the development of a system dynamics (note
2) model to simulate the western electricity market along side of the
utility's internal considerations. The relevant portion of the model has
been removed and adapted for this paper with all parameters estimated from
public data. It is designed at a relatively high level of aggregation compared
to the detailed production simulation models described in Appendix
B. Rather than simulating electricity demand for 12 different regions,
for example, total demand is simulated for the entire region. . Demand for Electricity Existing Low Cost Generation | Existing
High Cost Generation The Px Price | Average Annual
Values for Demand & Price Investment in New CCCTs | Investors'
Behavior Feedback Mechanisms