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Power and Energy Engineering Conference (PEEC 2010 E-BOOK)

Wuhan,China,9.11-9.13，2010

ISBN: 978-1-935068-17-4 Scientific Research Publishing, USA

E-Book 846pp Pub. Date: October 2010

Category: Engineering

Price: $80

Title: Research on Cost Allocation of Extraction Condensing Power Plant’s Production
Source: Power and Energy Engineering Conference (PEEC 2010 E-BOOK) (pp 141-145)
Author(s): Hongsheng Xu, School of Economic and Management, Southeast University, Nanjing, P. R. China.
Junli Zhang, School of Energy and Environment, Southeast University, Nanjing, P. R. China
Bin Ge, School of Energy and Environment, Southeast University, Nanjing, P. R. China
Abstract: Aim at cost allocation problem of extraction condensing power plant’s products, the paper presents a new allocation method: heat-electricity cost equivalent allocation method. In the model, heat-electricity cost is divided into fix cost and variable cost. Fix cost is allocated by Btu equivalence method which bases on “ordering power by heat” principle. Variable cost is allocated by lost kilowatts method which bases on “opportunity cost” principle. Compared with other existent allocation methods, the equivalent allocation method considers “ordering power by heat” principle as well as the market attribute of products which makes the allocation process and result more reasonable and easier to operate. It is observed that equivalent allocation method can reflect and stabilize the state policies such as “ordering power by heat” and “breakeven and meager profit” and so on. It is beneficial to encourage cogeneration’s investment, enhance energy saving in cogeneration’s corporations and heat users and reduce speculation behaviors of cogeneration’s corporations. It can also build up the fair between heat user and electricity user.
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