MARGINAL CAPACITY COSTS OF ELECTRICITY DISTRIBUTION AND DEMAND FOR DISTRIBUTED GENERATION

Marginal costs of electricity vary by time and location. Past research ers attributed these variations to factors related to electricity gene ration, transmission and distribution. Past authors, however, did not fully analyze the large variations in marginal distribution capacity c osts (MDCC) by area and time. Thus, the objectives of this paper are a s follows: (I) to show that large MDCC variations exist within a utili ty's service territory; (2) to demonstrate inter-utility variations in MDCC; and (3) to demonstrate the usefulness of these costs in determi ning demand for distributed generation (DG).