| Fall 2006 UMASS
Amherst Operations Research / Management Science Seminar Series |
Date: Friday, October 13, 2006 Time: 11:00 AM Location: Isenberg School of Management, Room 112 |
| Speaker: Professor
William Hogan Raymond Plank Professor of Global Energy Policy Kennedy School of Government Harvard University Cambridge, MA |
| Biography: Professor Hogan is Research
Director of the Harvard Electricity Policy Group (HEPG), which is
exploring the issues involved in the transition to a more competitive
electricity market. He is Director of the Repsol YPF - Harvard Kennedy
School Fellows Program for energy policy research and a member of the
organizing committee for the Repsol YPF-Harvard Energy Policy
Seminar. In addition, he serves as Director of Graduate
Studies for the Ph.D. Program in Public Policy and the Ph.D. Program in
Political Economy and Government at the Kennedy School of Government;
he has also served as Chair of the Public Policy Program and as
Director of the Energy and Environmental Policy Center. Professor Hogan has been actively engaged in the design and improvement of competitive electricity markets in many regions of the United States, as well as around the world, from England to Australia. His activities include designing the market structures and market rules by which regional transmission organizations, in various forms, coordinate bid-based markets for energy, ancillary services, and financial transmission rights. This research is also part of the larger activities of the Environment and Natural Resources Policy Program. He was a member of the faculty of Stanford University where he founded the Energy Modeling Forum (EMF), and is a Past President of the International Association for Energy Economics (IAEE). He received his undergraduate degree from the U.S. Air Force Academy and his Ph.D. from UCLA. |
| TITLE: Electricity Market
Restructuring, Economics, and Operations Research |
| Abstract: Existing technology for
electricity network systems requires central control and
coordination. Electricity markets emphasize use of incentives and
reliance on individual choice. Constrained optimization and
duality theory, core concepts in operations research, provide the
organizing framework that addresses these dual requirements.
Although application of this approach has revolutionized electricity
markets, it remains a work in progress. This presentation reviews
the essential issues to sketch the underlying problem and the nature of
the formal model based on choosing an operating point to maximize a
benefit function subject to a many constraints. The associated
dual solution defines prices and gives rise to long-term derivative
instruments that serve a function in providing transmission
rights. Extensions include alternative stochastic models with
operating reserve demand curves. |
| This series is organized by the
UMASS Amherst INFORMS Student Chapter. Support for this series is
provided by the Isenberg School of Management, the Department of
Finance and Operations Management, INFORMS, and the John F. Smith
Memorial Fund. For questions, please contact the INFORMS Student Chapter Speaker Series Coordinator, Ms. Trisha Woolley, twoolley@som.umass.edu |