A Probabilistic Production Costing Methodology for Systems with Storage

Abstract

Using the concept of an Expected Incremental Generation Cost Curve (EIGC), a new probabilistic production cost methodology is presented. This method, somewhat related to the Baleriaux-Booth equivalent load concept, is useful for production costing in both traditional systems and those involving storage. In fact, the probabilistic storage-thermal scheduling problem is shown to reduce to a deterministic scheduling problem easily solved using a linear programming approach.