PRICING OF ELECTRIC-POWER UNDER UNCERTAINTY - INFORMATION AND EFFICIENCY

Schemes for pricing electric power are compared in terms of how well t hey coordinate the decisions of participants-consumers, suppliers, reg ulators. A scheme is analyzed along two dimensions: the aspects of par ticipants' private information that the scheme reveals; and the effici ency of the allocation the scheme reaches. Information aspects are stu died within the framework of economic mechanism theory; allocation eff iciency is studied within a stochastic recourse model which takes into account consumer loss due to rationing.