1. Unity in Diversity - A Third Way Alternative to Capitalism or Central Planning? Stephen Lee Technical Executive Power Delivery & Markets Electric Power Research Institute April 15, 2005 Berkeley China Review Seminar
2.
3.
4.
5.
6.
7.
8.
9.
10. UDi-ism (Unity in Diversity) Tier 1 Costs (Direct Costs) UDI Cost = Tier 1 Cost + Tier 2 Cost * Best UDI Decision Tier 2 Costs (Public Good) Decision is not optimal if Tier 2 costs are ignored
11.
12. How Boom and Bust Cycles Can be Moderated by UDI-ism 3 Incentive Structures Scales = Economic Health Years The UDI profit motive would also dampen the boom and bust cycle of markets because the Tier 2 costs are typically long term and corporate governance would be influenced by Tier 2 stakeholders, i.e., States and residents who contribute Tier 2 capital in return for UDI capital ownership Tier 1 Short-term Profit Only UDI Profits Central Planning
16. Levelized Annual Costs to Determine Optimal Generation Mix without CO2 Cost CT (combustion turbines) Gas Coal
17. Levelized Annual Costs to Determine Optimal Generation Mix with CO2 Cost = $40/ton CT (combustion turbines) Gas Nuclear Fuel Cell Power Plants Comb Cycle
18. Levelized Annual Costs to Determine Optimal Generation Mix with CO2 Cost = $40/ton Load Duration Curve Hours of Operation Duration Per Year 0 Load (Electricity Demand) Area = Electric Energy Produced by FCPP
35. Example Summarized State A State B State C Customers Customers Customers Transmission Company $7.98 $1.14 $13.68 $0.74 $2.12 $1.48 Keeps $18.46, was guaranteed $15.06