Article,
An Efficient Concurrent Auction Model for Firm Natural Gas Transportation Capacity
INFOR, 30 (3): 240-256 (1992)
Abstract
In accordance with the reform policy of the Federal Energy
Regulatory Commission, open access to natural gas pipline
networks should allow large customers an opportunity to compete
for cost-effective natural gas supplies. The competitive
criterion is that all potential customers have equivalent access
at the market clearing price to any building blocks in natural
gas transportation service. Access to firm transportation
capacity rights, defined as reliability priority blocks at
critical bottlenecks, is a workable mechanism for planning and
managing capapcity allocations on the pipeline network. A
concurrent auction optimization model provides an allocation of
and prices for capacity rights for a given period, with
allocations reflecting the willingness to pay.
