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