ABSTRACT
The model described by Deonigi is essentially a supply model in that it is concerned with the generation of amounts of electric power (of given load characteristics) specified exogenously. The model equations are formulated more in terms of electric utility decision variables than in terms of economic theory. In this respect the model resembles the National Petroleum Council (NPC) oil and gas supply model described by Avramides. The NPC model was not, however, an optimizing model as this one is. Like Hoffman’s model, Deonigi’s is oriented toward the evaluation of new technologies, particularly new nuclear technologies. In providing for the introduction of new technologies the model seeks realism through the introduction of a number of real world type constraints (e.g., on the rate of introduction of new technology and the phase-out of old technology). Because power plant installations have long lives, the model provides special termination formulas to avoid overstating costs and understating benefits.
