Measuring economies of horizontal and vertical integration in the US electric power industry:how costly is unbundling?

This research employs econometric analysis on a cross section of American electricity companies in order to study the cost implications associated with unbundling the operations of integrated companies into vertically and/or horizontally separated companies. Focusing on the representative sample average firm, we find that complete horizontal and vertical disintegration resulting in the creation of separate nuclear, conventional, and hydro electric generation companies as well as a separate firm distributing power to final consumers, results in a statistically significant 13.5 percent increase in costs. Maintaining a horizontally integrated generator producing nuclear, conventional, and hydro electric generation while imposing vertical separation by creating a stand alone distribution company, results in a lower but still substantial and statistically significant cost penalty amounting to an 8.1 % increase in costs relative to a fully integrated structure. As these results imply that a vertically separated but horizontally integrated generation firm would need to reduce the costs of generation by 11% just to recoup the cost increases associated with vertical separation, even the costs associated with just vertical unbundling are quite substantial. Our paper is also the first academic paper we are aware of that systematically considers the impact of generation mix on vertical, horizontal, and overall scope economies. As a result, we are able to demonstrate that the estimated cost of unbundling in the electricity sector is substantially influenced by generation mix. Thus, for example, we find evidence of strong vertical integration economies between nuclear and conventional generation, but little evidence for vertical integration benefits between hydro generation and the distribution of power. In contrast, we find strong evidence suggesting the presence of substantial horizontal integration economies associated with the joint production of hydro generation with nuclear and/or conventional fossil fuel generation. These results are significant because they indicate that the cost of unbundling the electricity sector will differ substantially in different systems, meaning that a blanket regulatory policy with regard to the appropriateness of vertical and horizontal unbundling is likely to be inappropriate.

Biomass-based small and micro combined heat and power (CHP) systems:application and status in the United Kingdom

This chapter discusses the current state of biomass-based combined heat and power (CHP) production in the UK. It presents an overview of the UK's energy policy and targets which are relevant to the deployment of biomass-based CHP and summarises the current state for renewable, biomass and CHP. A number of small-scale biomass-based CHP projects are described while providing some indicative capital costs for combustion, pyrolysis and gasification technologies. For comparison purposes, it presents an overview of the respective situation in Europe and particularly in Sweden, Finland and Denmark. There is also a brief comment about novel CHP technologies in Austria. Finally it draws some conclusions on the potential of small-scale biomass CHP in the UK. © 2011 Woodhead Publishing Limited All rights reserved.

Two-dimensional optical power distribution of side-out-coupled radiation from tilted FBGs in multimode fibre

Two-dimensional optical power distribution of the out-coupled radiation from UV-inscribed tilted fibre Bragg gratings (TFBGs) in multimode fibre (MMF) has been side-detected with high spatial/spectral resolution, showing a near-identical radiation mode profile to that measured from the fibre-end detection method. A comparative investigation of the radiation characteristics of TFBGs fabricated in singlemode fibre (SMF) and MMF clearly indicates that the radiation out-coupling is stronger and spatially more confined in MMF. The unique spatial-to-spectral encoding property of the coupling mechanism offers potential application in low-cost WDM devices.

An examination of the development of LTL hub-and-spoke freight distribution systems

Over recent years, hub-and-spoke distribution techniques have attracted widespread research attention. Despite there being a growing body of literature in this area there is less focus on the spoke-terminal element of the hub-and-spoke system as being a key component in the overall service received by the end-user. Current literature is highly geared towards discussing bulk optimization of freight units rather than to the more discrete and individualistic profile characteristics of shared-user Less-than-truckload (LTL) freight. In this paper, a literature review is presented to review the role hub-and-spoke systems play in meeting multi-profile customer demands, particularly in developing sectors with more sophisticated needs, such as retail. The paper also looks at the use of simulation technology as a suitable tool for analyzing spoke-terminal operations within developing hub-and spoke systems.

Improving “last mile” delivery performance to retailers in hub and spoke distribution systems

Purpose – The purpose of this paper is to investigate the “last mile” delivery link between a hub and spoke distribution system and its customers. The proportion of retail, as opposed to non-retail (trade) customers using this type of distribution system has been growing in the UK. The paper shows the applicability of simulation to demonstrate changes in overall delivery policy to these customers. Design/methodology/approach – A case-based research method was chosen with the aim to provide an exemplar of practice and test the proposition that simulation can be used as a tool to investigate changes in delivery policy. Findings – The results indicate the potential improvement in delivery performance, specifically in meeting timed delivery performance, that could be made by having separate retail and non-retail delivery runs from the spoke terminal to the customer. Research limitations/implications – The simulation study does not attempt to generate a vehicle routing schedule but demonstrates the effects of a change on delivery performance when comparing delivery policies. Practical implications – Scheduling and spreadsheet software are widely used and provide useful assistance in the design of delivery runs and the allocation of staff to those delivery runs. This paper demonstrates to managers the usefulness of investigating the efficacy of current design rules and presents simulation as a suitable tool for this analysis. Originality/value – A simulation model is used in a novel application to test a change in delivery policy in response to a changing delivery profile of increased retail deliveries.

Estimation of productivity in Korean electric power plants:a semiparametric smooth coefficient model

This paper analyzes the impact of load factor, facility and generator types on the productivity of Korean electric power plants. In order to capture important differences in the effect of load policy on power output, we use a semiparametric smooth coefficient (SPSC) model that allows us to model heterogeneous performances across power plants and over time by allowing underlying technologies to be heterogeneous. The SPSC model accommodates both continuous and discrete covariates. Various specification tests are conducted to compare performance of the SPSC model. Using a unique generator level panel dataset spanning the period 1995-2006, we find that the impact of load factor, generator and facility types on power generation varies substantially in terms of magnitude and significance across different plant characteristics. The results have strong implication for generation policy in Korea as outlined in this study.

Two-dimensional optical power distribution of side-out-coupled radiation from tilted FBGs in multimode fibre

Two-dimensional optical power distribution of the out-coupled radiation from UV-inscribed tilted fibre Bragg gratings (TFBGs) in multimode fibre (MMF) has been side-detected with high spatial/spectral resolution, showing a near-identical radiation mode profile to that measured from the fibre-end detection method. A comparative investigation of the radiation characteristics of TFBGs fabricated in singlemode fibre (SMF) and MMF clearly indicates that the radiation out-coupling is stronger and spatially more confined in MMF. The unique spatial-to-spectral encoding property of the coupling mechanism offers potential application in low-cost WDM devices.

Two-dimensional optical power distribution of side-out-coupled radiation from tilted FBGs in multimode fibre

Two-dimensional optical power distribution of the out-coupled radiation from UV-inscribed tilted fibre Bragg gratings (TFBG) in multimode fibre (MMF) has been side-detected with high spatial spectral resolution, showing a near-identical radiation mode profile to that measured from the fibre-end detection method. A comparative investigation of the radiation characteristics of TFBGs fabricated in singlemode fibre (SMF) and MMF clearly indicates that the radiation out-coupling is stronger and spatially more confined in MMF. The unique spatial-to-spectral encoding property of the coupling mechanism offers potential application in low-cost WDM devices.

Experimental and theoretical study of longitudinal power distribution in a random DFB fiber laser

We have measured the longitudinal power distribution inside a random distributed feedback Raman fiber laser. The observed distribution has a sharp maximum whose position depends on pump power. The spatial distribution profiles are different for the first and the second Stokes waves. Both analytic solution and results of direct numerical modeling are in excellent agreement with experimental observations. © 2012 Optical Society of America.

Estimation of productivity in Korean electric power plants:a semiparametric smooth coefficient model

This paper analyzes the impact of load factor, facility and generator types on the productivity of Korean electric power plants. In order to capture important differences in the effect of load policy on power output, we use a semiparametric smooth coefficient (SPSC) model that allows us to model heterogeneous performances across power plants and over time by allowing underlying technologies to be heterogeneous. The SPSC model accommodates both continuous and discrete covariates. Various specification tests are conducted to assess the performance of the SPSC model. Using a unique generator level panel dataset spanning the period 1995-2006, we find that the impact of load factor, generator and facility types on power generation varies substantially in terms of magnitude and significance across different plant characteristics. The results have strong implications for generation policy in Korea as outlined in this study.

A simulation analysis of spoke-terminals operating in LTL Hub-and-Spoke freight distribution systems

DUE TO COPYRIGHT RESTRICTIONS ONLY AVAILABLE FOR CONSULTATION AT ASTON UNIVERSITY LIBRARY AND INFORMATION SERVICES WITH PRIOR ARRANGEMENT The research presented in this thesis is concerned with Discrete-Event Simulation (DES) modelling as a method to facilitate logistical policy development within the UK Less-than-Truckload (LTL) freight distribution sector which has been typified by “Pallet Networks” operating on a hub-and-spoke philosophy. Current literature relating to LTL hub-and-spoke and cross-dock freight distribution systems traditionally examines a variety of network and hub design configurations. Each is consistent with classical notions of creating process efficiency, improving productivity, reducing costs and generally creating economies of scale through notions of bulk optimisation. Whilst there is a growing abundance of papers discussing both the network design and hub operational components mentioned above, there is a shortcoming in the overall analysis when it comes to discussing the “spoke-terminal” of hub-and-spoke freight distribution systems and their capabilities for handling the diverse and discrete customer profiles of freight that multi-user LTL hub-and-spoke networks typically handle over the “last-mile” of the delivery, in particular, a mix of retail and non-retail customers. A simulation study is undertaken to investigate the impact on operational performance when the current combined spoke-terminal delivery tours are separated by ‘profile-type’ (i.e. retail or nonretail). The results indicate that a potential improvement in delivery performance can be made by separating retail and non-retail delivery runs at the spoke-terminal and that dedicated retail and non-retail delivery tours could be adopted in order to improve customer delivery requirements and adapt hub-deployed policies. The study also leverages key operator experiences to highlight the main practical implementation challenges when integrating the observed simulation results into the real-world. The study concludes that DES be harnessed as an enabling device to develop a ‘guide policy’. This policy needs to be flexible and should be applied in stages, taking into account the growing retail-exposure.

Longitudinal power distribution in a random DFB fiber laser

We have measured the longitudinal power distribution inside a random distributed feedback fiber laser. Both analytic solution and results of direct numerical modeling are in excellent agreement with experimental observations. © 2012 OSA.

Simulation of power quality issues in more electric aircraft actuator supplies

To examine the detailed operation of the power distribution network in a future more electric aircraft that employs electric actuation systems, a Micro-Cap SPICE simulation is developed for one of the essential buses. Particular attention is paid to model accurately the most important effects that influence system power quality. Representative system and flight data are used to illustrate the operation of the simulation and to assess the power quality conditions within the network as the flight control surfaces are deployed. The results illustrate the importance of correct cable sizing to ensure stable operation of actuators during transient conditions.

Vertical and horizontal scope economies in the regulated US electricity power industry

This paper investigates vertical economies between generation and distribution of electric power, and horizontal economies between different types of power generation in the U.S. electric utility industry. Our quadratic cost function model includes three generation output measures (hydro, nuclear and fossil fuels), which allows us to analyze the effect that generation mix has on vertical economies. Our results provide (sample mean) estimates of vertical economies of 8.1% and horizontal economies of 5.4%. An extensive sensitivity analysis is used to show how the scope measures vary across alternative model specifications and firm types. © 2012 Blackwell Publishing Ltd and the Editorial Board of The Journal of Industrial Economics.