Cross hedging and forward-contract pricing of electricity

Energy Technology Data Exchange (ETDEWEB)

Woo, C.-K.; Hoang, K. [Energy and Environmental Economics, Inc., 353 Sacramento Street, Suite 1700, 94111 San Francisco, CA (United States); Horowitz, I. [Decision and Information Sciences, Warrington College of Business Administration, University of Florida, 32611 Gainesville, FL (United States)

2001-01-01

We consider the problem of an electric-power marketer offering a fixed-price forward contract to provide electricity that it purchases from a potentially volatile and unpredictable fledgling spot energy market. One option for the risk-averse marketer who wants to hedge against the spot-price volatility is to engage in cross hedging to reduce the contract's profit variance, and to determine the forward-contract price as a risk-adjusted price - the sum of a baseline price and a risk premium. We show how the marketer can estimate the spot-price relationship between two wholesale energy markets for the purpose of cross hedging, as well as the optimal hedge and the forward contract's baseline price and risk premium.

48 CFR 46.707 - Pricing aspects of fixed-price incentive contract warranties.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Pricing aspects of fixed-price incentive contract warranties. 46.707 Section 46.707 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACT MANAGEMENT QUALITY ASSURANCE Warranties 46.707 Pricing aspects of...

48 CFR 1816.202 - Firm-fixed-price contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Firm-fixed-price contracts. 1816.202 Section 1816.202 Federal Acquisition Regulations System NATIONAL AERONAUTICS AND SPACE ADMINISTRATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 1816.202 Firm...

48 CFR 19.806 - Pricing the 8(a) contract.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Pricing the 8(a) contract...) Program) 19.806 Pricing the 8(a) contract. (a) The contracting officer shall price the 8(a) contract in accordance with subpart 15.4. If required by subpart 15.4, the SBA shall obtain certified cost or pricing...

Pricing of Contracts for Difference in the Nordic market

International Nuclear Information System (INIS)

Kristiansen, T.

2004-01-01

The purpose of this paper is to give an introduction to, and a pricing analysis of a new forward locational price differential product, Contracts for Difference (CfD), introduced the 17th of November 2000 at Nord Pool - the Nordic electricity exchange. To our knowledge there is no literature available of how the Nordic CfDs are priced. The CfD is a forward market product with reference to the difference between the future seasonal Area Price and System Price. By using available historical trading prices and spot prices for four seasonal contracts and one yearly contract, we analyze the relationships between the contract prices and the value of the underlying asset. For the first four seasonal contracts it appears that CfDs traded at Nord Pool are mostly over-priced relative to the underlying asset. Pricing theory for forward contracts explains this by the presence of a majority of risk-averse consumers who are willing to pay a risk premium for receiving the future price differential. We utilize statistical analysis with regard to the contract prices and the underlying asset, and find some interesting relationships. The analysis is preliminary due to the fact that the CfD market is relatively new. (Author)

48 CFR 836.606-72 - Contract price.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Contract price. 836.606-72 Section 836.606-72 Federal Acquisition Regulations System DEPARTMENT OF VETERANS AFFAIRS SPECIAL...-72 Contract price. (a) Where negotiations with the top-rated firm are unsuccessful, the contracting...

48 CFR 229.402-1 - Foreign fixed-price contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Foreign fixed-price... Foreign fixed-price contracts. Use the clause at 252.229-7000, Invoices Exclusive of Taxes or Duties, in solicitations and contracts when a fixed-price contract will be awarded to a foreign concern. ...

48 CFR 629.402-1 - Foreign fixed-price contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Foreign fixed-price contracts. 629.402-1 Section 629.402-1 Federal Acquisition Regulations System DEPARTMENT OF STATE GENERAL CONTRACTING REQUIREMENTS TAXES Contract Clauses 629.402-1 Foreign fixed-price contracts. ...

Defense Contract Audit Agency Reviews of Price Proposals

National Research Council Canada - National Science Library

1998-01-01

.... Auditors perform field pricing reviews of contractor price proposals when procurement office information is insufficient to perform the cost or price analysis needed to negotiate contract prices...

Two-part pricing structure in long-term gas sales contracts

International Nuclear Information System (INIS)

Slocum, J.C.; Lee, S.Y.

1992-01-01

Although the incremental electricity generation market has the potential to be a major growth area for natural gas demand in the U.S., it may never live up to such promise unless gas suppliers are more willing to enter into long-term gas sales agreements necessary to nurture this segment of the industry. The authors submit that producer reluctance to enter into such long-term sales agreements can be traced, at least in part to the differing contract price requirements between gas producers and buyers. This paper will address an evolving solution to this contracting dilemma - the development of a two-part pricing structure for the gas commodity. A two-part pricing structure includes a usage or throughput charge established in a way to yield a marginal gas cost competitive with electric utility avoided costs, and a reservation charge established to guarantee a minimum cash flow to the producer. Moreover, the combined effect of the two charges may yield total revenues that better reflect the producer's replacement cost of the reserves committed under the contract. 2 tabs

48 CFR 46.307 - Fixed-price research and development contracts.

Science.gov (United States)

2010-10-01

... REGULATION CONTRACT MANAGEMENT QUALITY ASSURANCE Contract Clauses 46.307 Fixed-price research and development... Development—Fixed-Price, in solicitations and contracts for research and development when (1) the primary... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Fixed-price research and...

48 CFR 616.207 - Firm-fixed-price, level-of-effort term contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Firm-fixed-price, level-of-effort term contracts. 616.207 Section 616.207 Federal Acquisition Regulations System DEPARTMENT OF STATE CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 616.207 Firm-fixed-price...

Production Contracts and the Spot Market Price of Hogs

OpenAIRE

Key, Nigel D.

2010-01-01

The increasing use of production contracts in the hog sector has reduced the number of spot market transactions, raised concerns about price manipulation and helped to spur legislation requiring price reporting by packers. Using data from the 2002 and 2007 Censuses of Agriculture, this study looks for evidence of market manipulation by examining whether the local prevalence of contracting affects the average price received by independent producers. The empirical approach uses a fixed-effects ...

48 CFR 16.207 - Firm-fixed-price, level-of-effort term contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Firm-fixed-price, level-of-effort term contracts. 16.207 Section 16.207 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 16.207 Firm-fixed...

48 CFR 16.403-1 - Fixed-price incentive (firm target) contracts.

Science.gov (United States)

2010-10-01

... (firm target) contracts. 16.403-1 Section 16.403-1 Federal Acquisition Regulations System FEDERAL... Fixed-price incentive (firm target) contracts. (a) Description. A fixed-price incentive (firm target... incentive (firm target) contract is appropriate when the parties can negotiate at the outset a firm target...

FACTORS INFLUENCING THE ACCURACY OF PRE-CONTRACT STAGE ESTIMATION OF FINAL CONTRACT PRICE IN NEW ZEALAND

Directory of Open Access Journals (Sweden)

Cong Ji

2014-12-01

Full Text Available Establishing and prioritising the factors that may influence the final contract price when responding to a call for tenders is crucial for proper risk analysis and reliable forecasting; it could make or mar the ability to achieve expected profit margin in an era of lump sum fixed price contracts where clients often contest variation claims. In New Zealand, these factors have not been researched; hence estimators rely only on judgement to ‘guess-estimate’ in their price forecasting. This study aimed to fill the knowledge gap by investigating the priority factors. 150 responses from professional members of the New Zealand Institute of Quantity Surveyors were analysed using multi-attribute method. Results showed thirty-seven factors which could influence the final contract price; the three most influential being poor tender documentation, complexity of design & construction, and completeness of project information. Other factors relating to project, client and contractor characteristics, design consultants and tendering conditions, estimating practice and external factors were reported. Concordance analysis indicated high level of agreement amongst survey participants in the rank-ordering of the relative importance of the identified factors. The findings could assist quantity surveyors to prepare more reliable contract price estimates at the pre-contract stage. It would also improve construction-stage cost control.

Natural gas pricing and contracting practices in North America

International Nuclear Information System (INIS)

Hassan, F.

1992-01-01

Over the past 5 years the natural gas industry in North America has undergone substantial change as a result of the deregulated market. A comparison is provided of the key contract parameters in gas purchase contracts utilized by local distribution companies, industrial customers, cogenerators and marketers. Issues discussed include pricing mechanisms, indexed contracts, negotiated contracts, combinations, dispute resolution, supply, government regulation, industry structures, financial considerations, perception, geological influences, demand, transmission, storage, distribution, price trends and forecasts, Order 636 in the U.S., the evolution of North American market hubs, the futures market, and 'daisy chains' of connecting pipelines. 15 refs., 7 figs., 1 tab

Non-price competition in NHS secondary care contracting: empirical results.

Science.gov (United States)

Gray, Keith; Bailey, Mark F

2008-01-01

The purpose of this paper is, for English acute NHS hospitals, to investigate how they operate their governance systems in the area of secondary care contracting and identify the key determinants of relationship building within the contacting/commissioning of secondary care focusing upon non-price competitive behaviour. A survey instrument was designed and mailed to a sample of all acute NHS hospitals in England of whom 35 per cent responded. This survey was then analysed using logit techniques. The analysis suggests that: those NHS Trusts offering volume discounts, non-price competitive incentives or having a strong belief in performance being by "payment by results" criteria are significantly more likely to offer augmented services to secondary care purchasers over and above contractual minima; those NHS Trusts strongly believing in the importance of non-price factors (such as contract augmentation or quality) in the contracting process are more likely to offer customisation of generic services; and those NHS Trusts using cost-sharing agreements to realign contracts when negotiating contracts or who strongly believe in the importance of service augmentation in strengthening relationships, or that increased hospital efficiency is the most important aspect of recent NHS reform are more likely to utilise default measures to help realign contracts. This paper fills a gap in the area of non-price competition in English NHS acute secondary care contracting.

48 CFR 52.232-10 - Payments Under Fixed-Price Architect-Engineer Contracts.

Science.gov (United States)

2010-10-01

... Architect-Engineer Contracts. 52.232-10 Section 52.232-10 Federal Acquisition Regulations System FEDERAL... Provisions and Clauses 52.232-10 Payments Under Fixed-Price Architect-Engineer Contracts. As prescribed in 32.111(c)(1), insert the following clause: Payments Under Fixed-Price Architect-Engineer Contracts (APR...

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract.

Science.gov (United States)

Sadjadi, Seyed Jafar; Asadi, Hashem; Sadeghian, Ramin; Sahebi, Hadi

2018-01-01

This paper studies the Retailer Stackelberg game in a supply chain consisting of two manufacturers and one retailer where they compete simultaneously under three factors including price, service and simple price discount contract. It is assumed that the second manufacturer provides service directly to his customers, and the retailer provides service for the first product's customers, while the retailer buys the first product under price discount from the first manufacturer. The analysis of the optimal equilibrium solutions and the results of the numerical examples show that if a manufacturer chooses the appropriate range of discount rate, he will gain more profit than when there is no discount given to the retailer. This situation can be considered as an effective tool for the coordination of the first manufacturer and the retailer to offer discount by manufacturer and to provide the service by the retailer. We obtain equilibrium solution of Retailer Stackelberg game and analyze the numerical examples under two cases: a) the manufacturers sell their products to the retailer without price discount contract. b) The first manufacturer sells his products to the retailer with the simple price discount contract. The preliminary results show that the service and the price discount contract can improve the performance of supply chain.

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract

Science.gov (United States)

Sadjadi, Seyed Jafar; Sadeghian, Ramin; Sahebi, Hadi

2018-01-01

This paper studies the Retailer Stackelberg game in a supply chain consisting of two manufacturers and one retailer where they compete simultaneously under three factors including price, service and simple price discount contract. It is assumed that the second manufacturer provides service directly to his customers, and the retailer provides service for the first product’s customers, while the retailer buys the first product under price discount from the first manufacturer. The analysis of the optimal equilibrium solutions and the results of the numerical examples show that if a manufacturer chooses the appropriate range of discount rate, he will gain more profit than when there is no discount given to the retailer. This situation can be considered as an effective tool for the coordination of the first manufacturer and the retailer to offer discount by manufacturer and to provide the service by the retailer. We obtain equilibrium solution of Retailer Stackelberg game and analyze the numerical examples under two cases: a) the manufacturers sell their products to the retailer without price discount contract. b) The first manufacturer sells his products to the retailer with the simple price discount contract. The preliminary results show that the service and the price discount contract can improve the performance of supply chain. PMID:29649315

48 CFR 52.232-26 - Prompt payment for fixed-price architect-engineer contracts.

Science.gov (United States)

2010-10-01

...-price architect-engineer contracts. 52.232-26 Section 52.232-26 Federal Acquisition Regulations System... Text of Provisions and Clauses 52.232-26 Prompt payment for fixed-price architect-engineer contracts...-Engineer Contracts (OCT 2008) Notwithstanding any other payment terms in this contract, the Government will...

48 CFR 52.222-44 - Fair Labor Standards Act and Service Contract Act-Price Adjustment.

Science.gov (United States)

2010-10-01

... and Service Contract Act-Price Adjustment. 52.222-44 Section 52.222-44 Federal Acquisition Regulations... CLAUSES Text of Provisions and Clauses 52.222-44 Fair Labor Standards Act and Service Contract Act—Price... Contract Act—Price Adjustment (SEP 2009) (a) This clause applies to both contracts subject to area...

The effects of residential real-time pricing contracts on transco loads, pricing, and profitability: Simulations using the N-ABLE trademark agent-based model

International Nuclear Information System (INIS)

Ehlen, Mark A.; Scholand, Andrew J.; Stamber, Kevin L.

2007-01-01

An agent-based model is constructed in which a demand aggregator sells both uniform-price and real-time price (RTP) contracts to households as means for adding price elasticity in residential power use sectors, particularly during peak-price hours of the day. Simulations suggest that RTP contracts help a demand aggregator (1) shift its long-term contracts toward off-peak hours, thereby reducing its cost of power and (2) increase its short-run profits if it is one of the first aggregators to have large numbers of RTP contracts; but (3) create susceptibilities to short-term market demand and price volatilities. (author)

Heterogeneous beliefs and routes to complex dynamics in asset pricing models with price contingent contracts

NARCIS (Netherlands)

Brock, W.A.; Hommes, C.H.

2001-01-01

This paper discusses dynamic evolutionary multi-agent systems, as introduced by Brock and Hommes (1997). In particular the heterogeneous agent dynamic asset pricing model of Brock and Hommes (1998) is extended by introducing derivative securities by means of price contingent contracts. Numerical

Volatile behaviour of enrichment uranium in the total nuclear fuel price

International Nuclear Information System (INIS)

Arnaiz, J.; Inchausti, J. M.; Tarin, F.

2004-01-01

In this article the historical high volatile behaviour of the total nuclear fuel price is evaluated quantitatively and it is concluded that it has been due mainly to the fluctuations of the price of the principal components of enriched uranium (concentrates and enrichment). In order to avoid the negative effects of this volatiles behaviour as far as possible, a basic strategy in the uranium procurement activities is recommended (union of buyers, diversification of supplier, stock management, optimisation of contract portfolio and suitable currency management that guarantees a reliable uranium supply at reasonable prices. These guidelines are those that ENUSA has been following on behalf of the Spanish Utilities in the Commission of Uranium Procurement (CAU in Spanish). (Author) 11 refs

Oil price induced gas acquisition contracts. Immune to price changes; Oelpreisindizierte Gasbezugsvertraege. Immun gegen Preisaenderungen

Energy Technology Data Exchange (ETDEWEB)

Verhoeven, Meike [Soptim AG, Aachen (Germany)

2012-10-15

The gas price continues to be linked to the oil price. Gas utilities that must buy gas in these conditions and sell it at a fixed price incur considerable financial risk. Especially with long-term buying contracts, and especially for gas from Russia, producers insist on linking to the oil price. Gas utilities, on the other hand, had to stop to sell gas at a price linked to the oil price two years ago. Utilities attempt to protect themselves, e.g. via oil swaps. Professional portfolio management is necessary to cope with the risks and the highly complex processes involved.

17 CFR Appendix A to Part 36 - Guidance on Significant Price Discovery Contracts

Science.gov (United States)

2010-04-01

... the contract likely will be the primary motivation for a publisher to publish particular prices. In other words, the fact that the price of a contract is being used as a reference by industry participants...

Asymmetric Information, Self-selection, and Pricing of Insurance Contracts

DEFF Research Database (Denmark)

Donnelly, Catherine; Englund, Martin Kristian; Nielsen, Jens Perch

2014-01-01

This article presents an optional bonus-malus contract based on a priori risk classification of the underlying insurance contract. By inducing self-selection, the purchase of the bonus-malus contract can be used as a screening device. This gives an even better pricing performance than both...... an experience rating scheme and a classical no-claims bonus system. An application to the Danish automobile insurance market is considered....

Final Report on the Audit of Subcontract Prices on Firm-Fixed-Price Contracts Awarded to McDonnell Aircraft Company

Science.gov (United States)

1990-12-03

This is our final report on the audit of Subcontract Prices on Firm-Fixed-Price Contracts Awarded to McDonnell Aircraft Company (MCAIR). The Contract Management Directorate made the audit from October 1989 through June 1990. The objective of the audit was to compare proposed and negotiated subcontract prices and determine reasons for significant variances. We also evaluated applicable internal control procedures. For a 6-month period ending December 1989, MCAIR issued 517 subcontracts valued at $679 million.

Contract Source Selection: An Analysis of Lowest Price Technically Acceptable and Tradeoff Strategies

Science.gov (United States)

2016-06-15

using- spss - statistics.php Lamoureux, J., Murrow, M., & Walls, C. (2015). Relationship of source selection methods to contract outcomes: an analysis ...Contract Source Selection: an Analysis of Lowest Price Technically Acceptable and Tradeoff Strategies 15 June 2016 LCDR Jamal M. Osman, USN...ACQUISITION RESEARCH PROGRAM SPONSORED REPORT SERIES Contract Source Selection: an Analysis of Lowest Price Technically Acceptable and Tradeoff

Contracting Fashion Products Supply Chains When Demand Is Dependent on Price and Sales Effort

Directory of Open Access Journals (Sweden)

Ying Wei

2015-01-01

Full Text Available This paper investigates optimal decisions in a two-stage fashion product supply chain under two specified contracts: revenue-sharing contract and wholesale price contract, where demand is dependent on retailing price and sales effort level. Optimal decisions and related profits are analyzed and further compared among the cases where the effort investment fee is determined and undertaken either by the retailer or the manufacturer. Results reveal that if the retailer determines the effort investment level, she would be better off under the wholesale price contract and would invest more effort. However, if the manufacturer determines the effort level, he prefers to the revenue-sharing contract most likely if both parties agree on consignment.

Real options theory to the pricing of allowances contract to carbon emission

International Nuclear Information System (INIS)

Horii, Leticia Takahashi; Parente, Virginia; Goldemberg, Jose

2010-01-01

The objective of this work is to develop a pricing model contract for allowances to emit carbon through Real Options. Emissions allowances are equivalent tons of carbon traded between Annex I countries from companies that have the ability to reduce their emissions beyond what is assigned to it. The surplus of emission reductions produced by these companies may be sold in the emissions market. Thus, this work can contribute to improving the management of contractual risk and enable companies estimated the price at which a contract can be signed. Properly evaluate the contracts that the market environment is a challenge for companies. The historic low of information and randomness in the price of carbon allowances in the spot market suggest extreme caution in its use. (author)

Analysis of Options Contract, Option Pricing in Agricultural Products

Directory of Open Access Journals (Sweden)

H. Tamidy

2016-03-01

Full Text Available Introduction: Risk is an essential component in the production and sale of agricultural products. Due to the nature of agricultural products, the people who act in this area including farmers and businesspersons encounter unpredictable fluctuations of prices. On the other hand, the firms that process agricultural products also face fluctuation of price of agricultural inputs. Given that the Canola is considered as one of the inputs of product processing factories, control of unpredictable fluctuations of the price of this product would increase the possibility of correct decision making for farmers and managers of food processing industries. The best available tool for control and management of the price risk is the use of future markets and options. It is evident that the pricing is the main pillar in every trade. Therefore, offering a fair price for the options will be very important. In fact, options trading in the options market create cost insurance stopped. In this way, which can reduce the risks of deflation created in the future, if the person entitled to the benefits of the price increase occurs in the future. Unlike the futures, market where the seller had to deliver the product on time, in the options market, there is no such compulsion. In addition, this is one of the strengths of this option contract, because if there is not enough product for delivery to the futures market as result of chilling, in due course, the farmers suffer, but in the options market there will be a loss. In this study, the setup options of rape, as a product, as well as inputs has been paid for industry. Materials and Methods: In this section. The selection criteria of the disposal of asset base for valuation of European put options and call option is been introduced. That for obtain this purpose, some characteristics of the goods must considered: 1-Unpredictable fluctuations price of underlying asset 2 -large underlying asset cash market 3- The possibility

Pricing of contract options for electric power; Precificacao de contrato de opcoes de energia eletrica

Energy Technology Data Exchange (ETDEWEB)

Takahashi, Leticia; Gunn, Laura Keiko; Correia, Paulo B. [Universidade Estadual de Campinas (FEM/UNICAMP), SP (Brazil). Fac. de Engenharia Mecanica. Dept. de Energia

2008-07-01

The reorganization of the electric sector has improved the opportunity of energy trade through contracts, which have to be considered on the risk evaluation for generating companies. Different types of contracts have been used in electric energy commercialization. This work develops a model for option contract pricing. The classic model of options pricing used in the financial market is based in Black- Scholes. Due to the inherent feature of the Brazilian electrical system, with a strong predominance of hydroelectricity, the seasonal swing of the electricity price is the main source of contractual risk. So, the Black-Scholes model very is not adjusted. To deal with the uncertainties, this work uses an approach based on analysis of scenarios and binomial trees. Case studies are analyzed with binomial tree to calculate the price of the option contract. (author)

Contracting Fashion Products Supply Chains When Demand Is Dependent on Price and Sales Effort

OpenAIRE

Wei, Ying; Xiong, Liyang

2015-01-01

This paper investigates optimal decisions in a two-stage fashion product supply chain under two specified contracts: revenue-sharing contract and wholesale price contract, where demand is dependent on retailing price and sales effort level. Optimal decisions and related profits are analyzed and further compared among the cases where the effort investment fee is determined and undertaken either by the retailer or the manufacturer. Results reveal that if the retailer determines the effort inves...

48 CFR 552.216-70 - Economic Price Adjustment-FSS Multiple Award Schedule Contracts.

Science.gov (United States)

2010-10-01

... ___* percent of the original contract unit price. The Government reserves the right to raise this ceiling where... price increase. (e) The Government reserves the right to exercise one of the following options: (1... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Economic Price Adjustment...

Joint replenishment and pricing decisions with different freight modes considerations for a supply chain under a composite incentive contract

DEFF Research Database (Denmark)

Noori-daryan, Mahsa; Taleizadeh, Ata Allah; Govindan, Kannan

2018-01-01

decisions of a single-manufacturer/multiple-retailer supply chain where a composite contract combines quantity and freight discounts, and a free shipping contract is incorporated into the model. Here, the transportation modes of raw materials and finished products are subject to a limited capacity...... in terms of their capacities regarding distance from the manufacturing site. In the third scenario, products are sent to a central warehouse for fast ship to the retailers. Demand depends on selling price and shortage is not permitted. The leader–follower game is considered between the members of the chain...... so that the manufacturer is a follower and the retailers are the leaders. This research aims to optimize the chain total profit concerning the selling prices and order quantities of the manufacturer and the retailers under different transport methods and a composite incentive contract. To clarify...

Alternative natural gas contract and pricing structures and incentives for the LNG industry

International Nuclear Information System (INIS)

Attanasi, E.D.

1991-01-01

Gas conversion to liquefied gas (LNG) and transport by LNG tankers is one option for meeting expanding gas consumption and for gas traded internationally. This paper examines the impact of the traditional gas contract provisions of indefinite pricing, market out price ceilings, and take-or-pay requirements on the profitability of LNG projects in the context of markets characterized by price and quantity uncertainty. Simulation of experiments are used to examine and calibrate the effects of those provisions. The results provide guidance to operators, host countries and purchasers in structuring such contracts. The paper also assesses prospects of future expansion of world LNG capacity. (author). 11 refs, 3 figs, 4 tabs

48 CFR 52.222-43 - Fair Labor Standards Act and Service Contract Act-Price Adjustment (Multiple Year and Option...

Science.gov (United States)

2010-10-01

... and Service Contract Act-Price Adjustment (Multiple Year and Option Contracts). 52.222-43 Section 52... Standards Act and Service Contract Act—Price Adjustment (Multiple Year and Option Contracts). As prescribed in 22.1006(c)(1), insert the following clause: Fair Labor Standards Act and Service Contract Act...

48 CFR 36.214 - Special procedures for price negotiation in construction contracting.

Science.gov (United States)

2010-10-01

... price negotiation in construction contracting. 36.214 Section 36.214 Federal Acquisition Regulations... negotiation in construction contracting. (a) Agencies shall follow the policies and procedures in part 15 when... scope of the work. If negotiations reveal errors in the Government estimate, the estimate shall be...

Forward Volatility Contract Pricing in the Brazilian Market

Directory of Open Access Journals (Sweden)

Sandro Magalhães Manteiga

2004-06-01

Full Text Available In this work we consider the pricing of a special class of volatility derivatives, the so-called variance swaps. The fair value of a variance swap is equal to the expected value of the realized variance of the underlying of the swap during the lifetime of the contract. It is shown how this expected value can be computed by means of an exotic option with logarithmic pay-off. We show how to statically replicate this pay-off in terms of a basket of synthetic vanilla call and put options. We apply this construction to the TNLP4 ticker of BOVESPA and synthetize a basket with pure exposure to volatility using actual market prices.

Locational price spreads and the pricing of contracts for difference. Evidence from the Nordic market

International Nuclear Information System (INIS)

Marckhoff, Jan; Wimschulte, Jens

2009-01-01

In electricity markets, not only does the risk of substantial price variations over time exist, but so does the risk of price variations over space, as prices between locations can differ due to transmission congestion. To manage this risk, Contracts for Difference (CfDs), i.e., forwards on the spread between a particular area price and the (unconstrained) system price, were introduced at the Scandinavian electricity exchange Nord Pool at the end of 2000. We empirically investigate the pricing of these CfDs over the period 2001 through 2006 and find that CfD prices contain significant risk premia. Their sign and magnitude, however, differ substantially between areas and delivery periods, because areas are subject to transmission congestion to a varying extent. While the relation between risk premia and time-to-maturity is not uniform for CfDs, there is a negative relation for implied area and system forwards, which can be explained by the relative hedging demand of market participants. In addition, we find that risk premia of CfDs and implied area forwards vary systematically with the variance and skewness of the underlying spot prices. This confirms both implications of the Bessembinder and Lemmon [Bessembinder, H., Lemmon, M.L., 2002. Equilibrium pricing and optimal hedging in electricity forward markets. Journal of Finance, 57, 1347-1382] model. (author)

75 FR 10272 - Notice Regarding 340B Drug Pricing Program-Contract Pharmacy Services

Science.gov (United States)

2010-03-05

... Regarding 340B Drug Pricing Program--Contract Pharmacy Services AGENCY: Health Resources and Services... drug pricing program by which manufacturers who sell covered outpatient drugs to particular covered... provisions, which had been previously limited to the Alternative Methods Demonstration Project program. FOR...

The evolution of electricity prices in an uncertain world. Contracting and managing the price risk

International Nuclear Information System (INIS)

Vassilopoulos, Ph.; Rapin, D.

2004-01-01

With the liberalization of the electricity market, the large industrial consumers saw their electric bill changing nature. Before, this price reflected a long term negotiation with the monopoly, now it is established in a free way via wholesale markets. This evolution marks a transfer of the management of price risk from the producer towards the consumer. This change is not in itself a problem if the hedging instruments are adapted. We note a contamination of the price of the derivative products by the spot while at the same time the traditional relation between cash and term is not always valid for electricity because of its non storability. When well even the price of the derivative products would be formed in an autonomous way, it poses a second problem: that of their indexing on price references like Platt's whose result is assimilated more to a survey of large producers than a true confrontation of supply and demand. This article proposes to examine this change of nature and behaviour of electricity prices. After having explained the intrinsically volatile characteristic of spot prices, we will recall that the products in the long term are not always optimal solutions to decrease this price risk. Lastly, we will highlight a solution of skirting at the risks mentioned above: contracting between producers and consumers. (authors)

48 CFR 452.232-70 - Reimbursement for Bond Premiums-Fixed-Price Construction Contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Reimbursement for Bond... Provisions and Clauses 452.232-70 Reimbursement for Bond Premiums—Fixed-Price Construction Contracts. As prescribed in 432.111, insert the following clause: Reimbursement for Bond Premiums—Fixed-Price Construction...

ON PRICE-MAKING CONTRACTS AND ECONOMIC THEORY: RETHINKING BERTRAND AND EDGEWORTH

OpenAIRE

Robert R. Routledge

2012-01-01

A problematic issue in economic theory is the study of price determination. Two distinct approaches to this difficult topic have been taken: (i) in Bertrand competition it is assumed sellers enter the market with a commitment to supply all demand forthcoming from buyers (ii) in Edgeworth competition sellers quote prices with no commitment to supply more than their competitive supply. Both these types of market contract struggle to provide credible pricemaking foundations for perfect competiti...

Optimal Hedging and Pricing of Equity-Linked Life Insurance Contracts in a Discrete-Time Incomplete Market

Directory of Open Access Journals (Sweden)

Norman Josephy

2011-01-01

Full Text Available We present a method of optimal hedging and pricing of equity-linked life insurance products in an incomplete discrete-time financial market. A pure endowment life insurance contract with guarantee is used as an example. The financial market incompleteness is caused by the assumption that the underlying risky asset price ratios are distributed in a compact interval, generalizing the assumptions of multinomial incomplete market models. For a range of initial hedging capitals for the embedded financial option, we numerically solve an optimal hedging problem and determine a risk-return profile of each optimal non-self-financing hedging strategy. The fair price of the insurance contract is determined according to the insurer's risk-return preferences. Illustrative numerical results of testing our algorithm on hypothetical insurance contracts are documented. A discussion and a test of a hedging strategy recalibration technique for long-term contracts are presented.

Method of moments approach to pricing double barrier contracts in polynomial jump-diffusion models

NARCIS (Netherlands)

Eriksson, B.; Pistorius, M.

2011-01-01

Abstract: We present a method of moments approach to pricing double barrier contracts when the underlying is modelled by a polynomial jump-diffusion. By general principles the price is linked to certain infinite dimensional linear programming problems. Subsequently approximating these by finite

A Composite Contract for Coordinating a Supply Chain with Price and Effort Dependent Stochastic Demand

Directory of Open Access Journals (Sweden)

Yu-Shuang Liu

2016-01-01

Full Text Available As the demand is more sensitive to price and sales effort, this paper investigates the issue of channel coordination for a supply chain with one manufacturer and one retailer facing price and effort dependent stochastic demand. A composite contract based on the quantity-restricted returns and target sales rebate can achieve coordination in this setting. Two main problems are addressed: (1 how to coordinate the decentralized supply chain; (2 how to determine the optimal sales effort level, pricing, and inventory decisions under the additive demand case. Numerical examples are presented to verify the effectiveness of combined contract in supply chain coordination and highlight model sensitivities to parametric changes.

Defense Contractor Restructuring; DoD Risks Forfeiting Savings on Fixed-Price Contracts

National Research Council Canada - National Science Library

1998-01-01

... on fixed-price contracts awarded to companies involved in a business combination between the time a combination is announced and the time that restructuring savings are reflected in the mechanism used...

Three-Level Supply Chain Coordination under Disruptions Based on Revenue-Sharing Contract with Price Dependent Demand

Directory of Open Access Journals (Sweden)

Qinghua Pang

2014-01-01

Full Text Available Considering the market demand is stochastic and dependent on price, this paper shows that the revenue-sharing contract could coordinate a three-level supply chain consisting of one manufacturer, one distributor, and one retailer under normal environment. However, the original revenue-sharing contract cannot coordinate the supply chain under disruptions in circumstances of certain incidents leading to significant changes in market demand and causing additional deviation costs. To solve the problem, this essay introduces two improved forms of revenue-sharing contract: a mixed contract form based on a quantity discount policy and a pure form, which are characterized by antidisruption ability. The model of improved revenue-sharing contract is optimized when the market demand is in the additive form or in the multiplicative form with price dependent demand. Formulas are given to calculate the optimal contract parameters. Finally, this essay demonstrates the accuracy of the model of improved revenue-sharing contract with the help of numerical examples.

Coordinating Contracts for Two-Stage Fashion Supply Chain with Risk-Averse Retailer and Price-Dependent Demand

Directory of Open Access Journals (Sweden)

Minli Xu

2013-01-01

Full Text Available When the demand is sensitive to retail price, revenue sharing contract and two-part tariff contract have been shown to be able to coordinate supply chains with risk neutral agents. We extend the previous studies to consider a risk-averse retailer in a two-echelon fashion supply chain. Based on the classic mean-variance approach in finance, the issue of channel coordination in a fashion supply chain with risk-averse retailer and price-dependent demand is investigated. We propose both single contracts and joint contracts to achieve supply chain coordination. We find that the coordinating revenue sharing contract and two-part tariff contract in the supply chain with risk neutral agents are still useful to coordinate the supply chain taking into account the degree of risk aversion of fashion retailer, whereas a more complex sales rebate and penalty (SRP contract fails to do so. When using combined contracts to coordinate the supply chain, we demonstrate that only revenue sharing with two-part tariff contract can coordinate the fashion supply chain. The optimal conditions for contract parameters to achieve channel coordination are determined. Numerical analysis is presented to supplement the results and more insights are gained.

Global LNG - characteristics, clients and contracts

International Nuclear Information System (INIS)

Bauquis, P.R.

1997-01-01

Total's liquefied natural gas (LNG) holdings were described. Other topics discussed included an overview of gas consumption and internationally traded gas in 1995, a primer on the history of LNG, Japan's average import prices in 1996, Europe's border gas prices and consumption in 1995, Canada/US regional price differences in 1995 and 1996, and world gas markets and prices in 1996. The projected LNG supply and demand in Europe and Asia , especially in Japan, China and India, was also discussed. General concepts of LNG pricing, the general structure of a gas sales contract, and the different categories of LNG contracts were also reviewed. 24 figs

Cost and Price Collaboration

Science.gov (United States)

2016-04-30

described below which relies on questionnaires administered to subject matter experts in both cost analysis and price analysis to determine the value of...additional reports or data that the price analyst used in determining their final negotiated position. The cost analyst section of the questionnaire...an analysis at the individual element level rather than at a total price level to determine the major changes from the awarded contract to the new

Pricing long-dated insurance contracts with stochastic interest rates and stochastic volatility

NARCIS (Netherlands)

van Haastrecht, A.; Lord, R.; Pelsser, A.; Schrager, D.

2009-01-01

We consider the pricing of long-dated insurance contracts under stochastic interest rates and stochastic volatility. In particular, we focus on the valuation of insurance options with long-term equity or foreign exchange exposures. Our modeling framework extends the stochastic volatility model of

48 CFR 1852.216-78 - Firm fixed price.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Firm fixed price. 1852.216... 1852.216-78 Firm fixed price. As prescribed in 1816.202-70, insert the following clause: Firm Fixed Price (DEC 1988) The total firm fixed price of this contract is $[Insert the appropriate amount]. (End...

Dynamic Pricing and Supply Coordination with Reimbursement Contract under Random Yield and Demand

Directory of Open Access Journals (Sweden)

Guo Li

2013-01-01

Full Text Available This paper investigates the dynamic pricing and supply chain coordination in a decentralized system that consists of one supplier and one manufacturer, in which both the market demand and production yield are stochastic. We show that the centralized expected profit is jointly concave in the production quantity and order quantity when the price is ex-ante selected. We also derive the equilibrium strategies in the decentralized system and prove that the entire profit of supply chain is inevitably lower than that under centralized system. Based on this, we propose a reimbursement contract to coordinate the decentralized supply chain so as to achieve the maximized profit. It is worth mentioning that, under reimbursement contract, the equilibrium production and order quantities are irrelevant to the manufacturer's risk sharing coefficient but are only determined by the supplier’s risk sharing coefficient.

Effectiveness of price adjustment clauses in district heat supply contracts. Consequences of the 2011 BGH rulings; Wirksamkeit von Preisanpassungsklauseln in Fernwaermelieferungsvertraegen. Konsequenzen der BGH-Urteile 2011

Energy Technology Data Exchange (ETDEWEB)

Buedenbender, Ulrich; Gromm, Marcel [TU Dresden (Germany). Lehrstuhl fuer Buergerliches Recht, Energiewirtschaftsrecht und Arbeitsrecht

2011-07-01

In 2011, the BGH had to decide for the first time on price adjustment clauses. There were four court rulings on price adjustment clauses in district heat supply contracts, and price adjustment clauses were considered to be ineffective in all cases. This is a trend similar to the rulings on gas supply contracts since 2005. This contribution discusses the consequences of the 2011 BGH rulings for future price adjustment clauses in district heat supply contracts. The contract partners, especially the customers of district heating utilities, must be sure whether a raised supply price will be based on an effective price adjustment clause, or whether it will enable the customer to refuse payment. (orig.)

A New Availability-Payment Model for Pricing Performance-Based Logistics Contracts

Science.gov (United States)

2014-05-01

Grant number: N00244‐13‐1‐0009 A New “Availability‐ Payment ”  Model  for Pricing Performance‐ Based Logistics Contracts A. KashaniPour, X. Zhu, P...DATE MAY 2014 2. REPORT TYPE 3. DATES COVERED 00-00-2014 to 00-00-2014 4. TITLE AND SUBTITLE A New ’Availability‐ Payment ’ Model for...is how the  payment   model  in the contract  quantifies the contractor’s  performance for awarding incentives  or penalties Discrete‐Event Simulator ut

PRICING AND ASSESSING UNIT-LINKED INSURANCE CONTRACTS WITH INVESTMENT GUARANTEES

Directory of Open Access Journals (Sweden)

Ciumas Cristina

2014-07-01

Full Text Available One of the most interesting life insurance products to have emerged in recent years in the Romanian insurance market has been the unit-linked contract. Unit-linked insurance products are life insurance policies with investment component. A unit-linked life insurance has two important components: protection and investment. The protection component refers to the insured sum in case of the occurrence of insured risks and the investment component refers to the policyholders’ account that represents the present value of the units from the chosen investment funds. Due to the financial instability caused by the Global Crisis and the amplification of market competitiveness, insurers from international markets have started to incorporate guarantees in unit-linked products. So a unit- linked life insurance policy with an asset value guarantee is an insurance policy whose benefit payable on death or at maturity consists of the greater of some guaranteed amount and the value of the units from the investment funds. One of the most challenging issues concerns the pricing of minimum death benefit and maturity benefit guarantees and the establishing of proper reserves for these guarantees. Insurers granting guarantees of this type must estimate the cost and include the cost in the premium. An important component of the activity carried out by the insurance companies is the investment of the premiums paid by policyholders in various types of assets, in order to obtain higher yields than those guaranteed by the insurance contracts, while providing the necessary liquidity for the payment of insurance claims in case of occurrence of the assumed risks. So the guaranteed benefits can be broadly matched or immunized with various types of financial assets, especially with fixed-interest instruments. According to Romanian legislation which regulates the unit-linked life insurance market, unit-linked life insurance contracts pass most of the investment risk to the

48 CFR 1615.407-1 - Rate reduction for defective pricing or defective cost or pricing data.

Science.gov (United States)

2010-10-01

... defective pricing or defective cost or pricing data. 1615.407-1 Section 1615.407-1 Federal Acquisition... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1615.407-1 Rate reduction for defective pricing or defective cost or pricing data. The clause set forth in section 1652.215-70...

Optimal combined purchasing strategies for a risk-averse manufacturer under price uncertainty

Directory of Open Access Journals (Sweden)

Qiao Wu

2015-09-01

Full Text Available Purpose: The purpose of our paper is to analyze optimal purchasing strategies when a manufacturer can buy raw materials from a long-term contract supplier and a spot market under spot price uncertainty. Design/methodology/approach: This procurement model can be solved by using dynamic programming. First, we maximize the DM’s utility of the second period, obtaining the optimal contract quantity and spot quantity for the second period. Then, maximize the DM’s utility of both periods, obtaining the optimal purchasing strategy for the first period. We use a numerical method to compare the performance level of a pure spot sourcing strategy with that of a mixed strategy. Findings: Our results show that optimal purchasing strategies vary with the trend of contract prices. If the contract price falls, the total quantity purchased in period 1 will decrease in the degree of risk aversion. If the contract price increases, the total quantity purchased in period 1 will increase in the degree of risk aversion. The relationship between the optimal contract quantity and the degree of risk aversion depends on whether the expected spot price or the contract price is larger in period 2. Finally, we compare the performance levels between a combined strategy and a spot sourcing strategy. It shows that a combined strategy is optimal for a risk-averse buyer. Originality/value: It’s challenging to deal with a two-period procurement problem with risk consideration. We have obtained results of a two-period procurement problem with two sourcing options, namely contract procurement and spot purchases. Our model incorporates the buyer’s risk aversion factor and the change of contract prices, which are not addressed in early studies.

Contract market power and its impact on the efficiency of the electricity sector

International Nuclear Information System (INIS)

Serra, Pablo

2013-01-01

This paper analyzes the pro-competitive effects of financial long-term contracts in oligopolistic electricity markets. This is done in a model that incorporates the main features of the industry: non-storable production, time-varying price-elastic demand, and sequential investment and production decisions. The paper considers contracts for difference that have as reference price the average spot price. Assuming that the spot market coordinator sets competitive prices, the paper shows that installed capacity increases with the quantity of energy contracted, reaching the welfare-maximizing capacity when energy contracted equals this same level. Next, the paper studies the case where the quantity of energy contracted is endogenous and contracts are traded before capacity decisions are taken. Regarding purchasers of contracts, two polar cases are considered: either they are price-taker speculators or they are an aggregation of consumers that auctions a long (buy) contract for a given energy quantity. In the former case the strike price equals the reference price, i.e., arbitrage is perfect, and the quantity of energy contracted falls short of the efficient level. In turn, in the latter case, the strike price equals the average efficient spot price. Moreover, an aggregation of all consumers would choose to auction the social optimum quantity. - Highlights: • The paper analyzes the pro-competitive impact of contracts for difference. • The reference price of contracts is the average spot price. • Installed capacity increases with total quantity of energy contracted. • Social welfare is maximized when energy contracted equals the efficient capacity. • An aggregation of all consumers would choose to auction the efficient quantity

48 CFR 215.402 - Pricing policy.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Pricing policy. 215.402... OF DEFENSE CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 215.402 Pricing policy. Follow the procedures at PGI 215.402 when conducting cost or price analysis, particularly...

48 CFR 15.402 - Pricing policy.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Pricing policy. 15.402... AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.402 Pricing policy. Contracting... certified cost or pricing data when required by 15.403-4, along with data other than certified cost or...

Optimal Decisions in a Single-Period Supply Chain with Price-Sensitive Random Demand under a Buy-Back Contract

Directory of Open Access Journals (Sweden)

Feng Wang

2014-01-01

Full Text Available This paper studies a single-period supply chain with a buy-back contract under a Stackelberg game model, in which the supplier (leader decides on the wholesale price, and the retailer (follower responds to determine the retail price and the order quantity. We analytically investigate the decentralized retailer’s optimal decision. Our results demonstrate that the retailer has a unique optimal simultaneous decision on the retail price and the order quantity, under a mild restriction on the demand distribution. Moreover, as it can be shown that the decentralized supply chain facing price-sensitive random demand cannot be coordinated with buy-back contract, we propose a scheme for the system to achieve Pareto-improvement. Theoretical analysis suggests that there exists a unique Pareto-equilibrium for the supply chain. In particular, when the Pareto-equilibrium is reached, the supply chain is coordinated. Numerical experiments confirm our results.

48 CFR 15.405 - Price negotiation.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Price negotiation. 15.405... AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.405 Price negotiation. (a) The purpose of performing cost or price analysis is to develop a negotiation position that permits the...

Impacts of Transitioning from Firm Fixed Price to Fixed Price Incentive Firm Target Contracts in PEO Missiles and Space

Science.gov (United States)

2016-09-01

this graph, the Defense Index recognized lower operating margins than S&P indices for capital goods, pharmaceuticals and biotechnology , technical...Research Service. https://www.fas.org/sgp/crs/weapons/RS22942.pdf Frick, D. (2013). Risk in fixed-price contracts. Defense AT&L Magazine . November...Joint_Light_Tactical_Vehicle Kendall, F. (2011). Better Buying Power special issue foreword. Defense AT&L Magazine . September-October 2011. Retrieved from http://www.dau.mil

48 CFR 215.403-5 - Instructions for submission of cost or pricing data or information other than cost or pricing data.

Science.gov (United States)

2010-10-01

... submission of cost or pricing data or information other than cost or pricing data. 215.403-5 Section 215.403... DEFENSE CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 215.403-5 Instructions for submission of cost or pricing data or information other than cost or pricing data. When the...

Temporary labour contracts

CERN Document Server

2000-01-01

The five contracts for Temporary Labour assignments on the CERN site (L020/PE, L 021/PE, L 022/PE, L 023/PE and L 024/PE) approved by the Finance Committee in March 1996 (CERN/FC/3857) reached the end of their initial three-year contractual period at the end of December 1999. At CERN?s request, in September 1999 the Finance Committee approved an extension of these contracts for the year 2000 for a total amount not exceeding 6 000 000 Swiss francs (CERN/FC/4196). In December 1999, one of the five contractors, FIRCROFT, withdrew from its contract for 2000. Following the satisfactory execution of the four remaining contracts during 2000, CERN requests approval to extend them from January 2001 for the second of the two optional years provided for in the original adjudication. The Finance Committee is invited to approve the extension of the existing contracts until 31 December 2001 for a total amount not exceeding 6 000 000 Swiss francs at 2000 prices.

48 CFR 15.404-3 - Subcontract pricing considerations.

Science.gov (United States)

2010-10-01

... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.404-3 Subcontract pricing considerations. (a) The contracting officer is responsible for the determination of a fair and... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Subcontract pricing...

Long-term contract auctions and market power in regulated power industries

International Nuclear Information System (INIS)

Soledad Arellano, M.; Serra, Pablo

2010-01-01

A number of countries with oligopolistic power industries have used marginal cost pricing to set the price of energy for small customers. This course of action, however, does not necessarily ensure an efficient outcome when competition is imperfect. The purpose of this paper is to study how the auction of long-term contracts could reduce market power. We do so in a two-firm, two-technology, linear-cost, static model where demand is summarized by a price inelastic load curve. In this context we show that the larger the proportion of total demand auctioned in advance, the lower are both the contract and the average spot price of energy.

48 CFR 12.207 - Contract type.

Science.gov (United States)

2010-10-01

... fixed-price with economic price adjustment contracts (e.g., by limiting the value or length of the time... when— (i) The prices are established based on a firm-fixed-price or fixed-price with economic price... pricing structure is not practicable. The D&F for this contract shall be approved one level above the...

Industrial Services Contracts

CERN Document Server

2006-01-01

This document gives an overview of Industrial Services contracts at CERN, including the probable expenditure in 2006 and the estimated expenditure for 2007. The Finance Committee is invited: - to take note of the revised amount in 2006 for Industrial Services contracts referred to in this document of 138.02 MCHF at 2006 prices compared to the previously anticipated amount of 122.67 MCHF at 2005 prices; - to take note that the estimated amount in 2007 for the contracts referred to in this document will be 112.54 MCHF at 2006 prices; - for the reasons set out in this document, the Finance Committee is also invited to approve the requests for the contracts presented and highlighted in the Annexes.

48 CFR 15.407 - Special cost or pricing areas.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 1 2010-10-01 2010-10-01 false Special cost or pricing... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.407 Special cost or pricing areas. ...

48 CFR 1315.407 - Special cost or pricing areas.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Special cost or pricing... CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1315.407 Special cost or pricing areas. ...

48 CFR 1815.407 - Special cost or pricing areas.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Special cost or pricing... ADMINISTRATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1815.407 Special cost or pricing areas. ...

48 CFR 1815.403 - Obtaining cost or pricing data.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Obtaining cost or pricing... ADMINISTRATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1815.403 Obtaining cost or pricing data. ...

48 CFR 1615.402 - Pricing policy.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 6 2010-10-01 2010-10-01 true Pricing policy. 1615.402... Contract Pricing 1615.402 Pricing policy. Pricing of FEHB contracts is governed by 5 U.S.C. 8902(i), 5 U.S....403-4(a)(1), OPM will not require the carrier to provide cost or pricing data in the rate proposal for...

48 CFR 52.215-11 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications.

Science.gov (United States)

2010-10-01

... accordingly and the contract shall be modified to reflect the reduction. This right to a price reduction is... 48 Federal Acquisition Regulations System 2 2010-10-01 2010-10-01 false Price Reduction for... CONTRACT CLAUSES Text of Provisions and Clauses 52.215-11 Price Reduction for Defective Certified Cost or...

48 CFR 15.403 - Obtaining certified cost or pricing data.

Science.gov (United States)

2010-10-01

... or pricing data. 15.403 Section 15.403 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.403 Obtaining certified cost or pricing data. ...

48 CFR 52.216-25 - Contract Definitization.

Science.gov (United States)

2010-10-01

..., including data other than certified cost or pricing data, and certified cost or pricing data, in accordance... is [insert target date for definitization of the contract and dates for submission of proposal... certified cost or pricing data]: (c) If agreement on a definitive contract to supersede this letter contract...

Security Price Informativeness with Delegated Traders

OpenAIRE

Gary Gorton; Ping He; Lixin Huang

2010-01-01

Trade in securities markets is conducted by agents acting for principals, using "mark-to-market" contracts whereby performance is assessed using security market prices. We endogenize contract choices, information production, informed trading, and security price informativeness. But there is a contract externality. Prices are informative only because other principals induce their agents to trade based on privately produced information. The agent-traders then have an incentive to coordinate and...

Panel discussion : contract design

International Nuclear Information System (INIS)

Vallas, A.; Vegh, G.; McGee, M.; Zaremba, T.; Seshan, A.; Harricks, P.; Bertoldi, L.; Taylor, R.

2003-01-01

This session presented highlights of the comments of 8 panelists who discussed the issue of contract design. The new electricity market in Ontario has introduced the energy trader, who enters into a contract with the consumer, based on the spot price set by the Independent Electricity Market Operator. Every contract has a fixed price payer as well as floating-price payers. If the floating price for a given amount of energy is higher than the fixed price, then the consumer gets the difference. Confusion, however, arises with the purchase of retail physical power in the market, particularly in deciding a fixed rate that the consumer will be paying. Different billing options were also discussed with emphasis on mid to large retail customers that have portfolios in the tens of MW and up to 100 MW or more. figs

Panel discussion : contract design

Energy Technology Data Exchange (ETDEWEB)

Vallas, A. [Sempra Energy Trading, Toronto, ON (Canada); Vegh, G. [MacLeod Dixon, Toronto, ON (Canada); McGee, M. [Energy Profiles Ltd., Etobicoke, ON (Canada); Zaremba, T. [Direct Energy Marketing, Calgary, AB (Canada); Seshan, A. [Larson and Toubro Information Technology, Toronto, ON (Canada); Harricks, P. [Gowlings, Toronto, ON (Canada); Bertoldi, L. [Borden Ladner Gervais, Toronto, ON (Canada); Taylor, R. [Hydro One Networks Inc., Markham, ON (Canada)

2003-05-01

This session presented highlights of the comments of 8 panelists who discussed the issue of contract design. The new electricity market in Ontario has introduced the energy trader, who enters into a contract with the consumer, based on the spot price set by the Independent Electricity Market Operator. Every contract has a fixed price payer as well as floating-price payers. If the floating price for a given amount of energy is higher than the fixed price, then the consumer gets the difference. Confusion, however, arises with the purchase of retail physical power in the market, particularly in deciding a fixed rate that the consumer will be paying. Different billing options were also discussed with emphasis on mid to large retail customers that have portfolios in the tens of MW and up to 100 MW or more. figs.

Pricing of temperature index insurance

Directory of Open Access Journals (Sweden)

Che Mohd Imran Che Taib

2012-01-01

Full Text Available The aim of this paper is to study pricing of weather insurance contracts based on temperature indices. Three different pricing methods are analysed: the classical burn approach, index modelling and temperature modelling. We take the data from Malaysia as our empirical case. Our results show that there is a significant difference between the burn and index pricing approaches on one hand, and the temperature modelling method on the other. The latter approach is pricing the insurance contract using a seasonal autoregressive time series model for daily temperature variations, and thus provides a precise probabilistic model for the fine structure of temperature evolution. We complement our pricing analysis by an investigation of the profit/loss distribution from the contract, in the perspective of both the insured and the insurer.

Energy price risk management

International Nuclear Information System (INIS)

Evans, J.W.G.

1998-01-01

While long term, fixed price contracts for fuel procurement and export of excess power may lock in the economics of a CHP plant, these do not necessarily give the best pricing opportunities that may exist during the life of those contracts. A more prudent approach may be to vary the length of the contracts and markets are now developing in gas and electricity to assist in the management of such a portfolio. (Author)

Bilateral electric energy contracts: return and risk

Energy Technology Data Exchange (ETDEWEB)

Gunn, Laura K.; Silva, Elisa B.; Correia, Paulo B. [State University of Campinas (UNICAMP), SP (Brazil). College of Mechanical Engineering

2009-07-01

In Brazil electricity is traded through three segments: the spot market that balances offer and demand, with prices calculated by a cost-based computational model; the regulated market , where prices are settled in public auctions, and the free market for bilateral contracts. As spot and regulated market prices are public information, a seller is able to calculate his opportunity price to trade a bilateral contract in the free market by using the non-arbitrage principle. Thus, the seller searches the price of a bilateral contract in the free market that balances his/her revenues with the value expected in case it were negotiated in the regulated and the spot market. Besides the expected revenue, the seller may also consider the CVaR to measure the risk of her/his bilateral contract in the free market. So this paper develops a binomial lattice approach to price bilateral contracts in the free market, considering the seller's opportunity of negotiations in both regulated and spot markets, and measuring the contract risk directly. (author)

Consumer poaching, brand switching, and price transparency

DEFF Research Database (Denmark)

Schultz, Christian

2014-01-01

This paper addresses price transparency on the consumer side in markets with behavioral price discrimination which feature welfare reducing brand switching. When long-term contracts are not available, an increase in transparency intensifies competition, lowers prices and profits, reduces brand...... switching and benefits consumers and welfare. With long-term contracts, an increase in transparency reduces the use of long-term contracts, leading to more brand switching and a welfare loss. Otherwise, the results are the same as without long-term contracts....

48 CFR 15.408 - Solicitation provisions and contract clauses.

Science.gov (United States)

2010-10-01

... incentive contract is contemplated; or (2) Its Alternate II, if a cost-plus-incentive-fee contract is contemplated. (b) Price Reduction for Defective Certified Cost or Pricing Data. The contracting officer shall... Certified Cost or Pricing Data, in solicitations and contracts when it is contemplated that certified cost...

Alberta producers' gas export prices slip

International Nuclear Information System (INIS)

Chandrasekharaiah, M.N.; Dubben, G.; Kolster, B.H.

1992-01-01

This paper reports that Alberta gas producers have approved a new contract with California buyers that includes slightly lower wellhead prices and more flexible pricing terms. The 1 year agreement, will apply a flexible price formula to gas sales. A basic volume of 212 MMcfd will receive $1.52 (U.S.)/Mcf. A and S also will buy 200 MMcfd at prices paid for other Alberta gas in the California market. It will have the right to buy added volumes at prices indexed to gas sold into California from the U.S. Southwest. Ballots cast by producers were to be verified by regulatory agencies in Alberta and British Columbia. The more flexible price terms in the new contract are seen as a positive development for negotiations in a dispute over long term contracts

Regulated and unregulated Nordic retail prices

International Nuclear Information System (INIS)

Johnsen, Tor Arnt; Olsen, Ole Jess

2011-01-01

Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: → Prices of active and passive Nordic residential electricity consumers are compared. → Active consumers get lower prices in Sweden but not in Norway. → Prices of passive consumers differ considerably among the four Nordic countries. → Danish regulated prices compare well with unregulated prices in the other countries. → Passive consumers in Finland have low prices compared with the other countries.

Regulated and unregulated Nordic retail prices

Energy Technology Data Exchange (ETDEWEB)

Johnsen, Tor Arnt, E-mail: tor.a.johnsen@bi.no [Norwegian School of Management BI, NO-0442 Oslo (Norway); Olsen, Ole Jess, E-mail: ojo@ruc.dk [Department of Environmental, Social and Spatial Change (ENSPAC), Roskilde University, Building 10.1, Universitetsvej 1, DK-4000, Roskilde (Denmark)

2011-06-15

Nordic residential electricity consumers can now choose among a number of contracts and suppliers. A large number of households have continued to purchase electricity from the incumbent supplier at default contract terms. In this paper, we compare the situation for such passive customers. Danish default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from the monopoly period. Danish margins are higher than the competitive Norwegian margins but are earned from a much lower level of consumption. The annually margins earned per consumer are very close in the two countries, which indicates that the Danish regulation is achieving its objective of approaching competitive prices. - Highlights: > Prices of active and passive Nordic residential electricity consumers are compared. > Active consumers get lower prices in Sweden but not in Norway. > Prices of passive consumers differ considerably among the four Nordic countries. > Danish regulated prices compare well with unregulated prices in the other countries. > Passive consumers in Finland have low prices compared with the other countries.

Price control in contracts of heat supply. May no more index be used in automatic price escalator clauses?; Preiskontrolle in Waermeliefervertraegen.. Darf in automatischen Preisgleitklauseln kein Index mehr genutzt werden?

Energy Technology Data Exchange (ETDEWEB)

Legler, Dirk [Guenther Heidel Wollenteit Hack Goldmann, Hamburg (Germany)

2010-03-15

Automatic price escalator clauses using a price index are AGB legally permissible in heat supply contracts. The fact that such price indices necessarily compound and orient themselves only at its own development of delivery costs is so long innocuous since the selection of these indices essentially can be justified on the basis of objective criteria. However, if the heat supplier as a user of the AGB uses no indices, but passes its costs of acquisition in its price escalator clause simply to 100 %, this evenly can be inadmissible according to paragraph 24 sect. 3, sentence 1 of AVB district heating regulation. This is valid if such a 'servile' passing signifies a neglect of conditions on the market.

Influence of TCSC on congestion and spot price in electricity market with bilateral contract

International Nuclear Information System (INIS)

Acharya, Naresh; Mithulananthan, Nadarajah

2007-01-01

This paper presents a quantitative analysis of the effect of TCSC on congestion and spot price in deregulated electricity markets. The paper could also be considered as a comprehensive tutorial on the influence of TCSC in electricity market. A voluntary pool market, where the market participants can trade electricity either via a pool or through bilateral contracts is considered. The electricity market is modeled in an optimal power flow framework with the objective of maximizing the social welfare. In such formulation, the Lagrange operators associated with the equality constraints associated with real power balance give the spot prices of energy at each bus of the system. Studies are carried out with and without TCSC at peak and low loading conditions to capture the influence and to see the effectiveness of TCSC at different loading conditions. The paper further explores the effect of TCSC compensation level on the spot prices and the congestion under varying pool and bilateral loading conditions. A 5-bus test system is used for numerical studies and to showcase the influence of TCSC in an electricity market environment. (author)

Regulated and unregulated Nordic retail prices

DEFF Research Database (Denmark)

Olsen, Ole Jess; Johnsen, Tor Arnt

2011-01-01

in Sweden but higher than in Norway and Finland. Because of market design Norwegian default contracts are competitive whereas Swedish contracts provide the retailer with some market power. We interpret the low Finnish margins as a result of municipal retailers continuing traditional pricing from...... competitive prices....... default prices are regulated whereas default prices in the other countries are unregulated. Systematic price differences exist among the Nordic countries. However, as wholesale prices sometimes differ the gross margin is a more relevant indicator. Regulated gross margins are lower in Denmark than...

48 CFR 22.407 - Solicitation provision and contract clauses.

Science.gov (United States)

2010-10-01

... Adjustment (None or Separately Specified Pricing Method), in solicitations and contracts if the contract is... determines the most appropriate contract price adjustment method is the method at 22.404-12(c)(1) or (2); or....222-31, Davis-Bacon Act—Price Adjustment (Percentage Method), in solicitations and contracts if the...

Real options theory to the pricing of allowances contract to carbon emission; Teoria de opcoes reais para a precificacao de contrato de permissoes de emissao de carbono

Energy Technology Data Exchange (ETDEWEB)

Horii, Leticia Takahashi; Parente, Virginia; Goldemberg, Jose [Universidade de Sao Paulo (IEE/USP), SP (Brazil). Inst. de Eletrotecnica e Energia

2010-07-01

The objective of this work is to develop a pricing model contract for allowances to emit carbon through Real Options. Emissions allowances are equivalent tons of carbon traded between Annex I countries from companies that have the ability to reduce their emissions beyond what is assigned to it. The surplus of emission reductions produced by these companies may be sold in the emissions market. Thus, this work can contribute to improving the management of contractual risk and enable companies estimated the price at which a contract can be signed. Properly evaluate the contracts that the market environment is a challenge for companies. The historic low of information and randomness in the price of carbon allowances in the spot market suggest extreme caution in its use. (author)

48 CFR 32.908 - Contract clauses.

Science.gov (United States)

2010-10-01

..., Prompt Payment for Fixed-Price Architect-Engineer Contracts, in solicitations and contracts that contain the clause at 52.232-10, Payments Under Fixed-Price Architect-Engineer Contracts. (1) As authorized in... specify a period longer than 7 days for constructive acceptance or constructive approval, if required to...

Temporary labour contracts

CERN Document Server

2001-01-01

At its September 2000 meeting, the Finance Committee approved a second one-year extension of the four existing temporary labour contracts (L020/PE, L021/PE, L022/PE, L023/PE) until 31 December 2001 for a total amount not exceeding 6 000 000 Swiss francs at 2000 prices. The Finance Committee is invited: - to take note that the estimated annual expenditure on temporary labour in 2001 will amount to approximately 4 500 000 Swiss francs against the previously estimated 6 000 000 Swiss francs; - to approve the extension of the four existing contracts by six months to 30 June 2002 for an overall amount not exceeding 1 500 000 Swiss francs; - to take note that new contracts for the Swiss part of the CERN site will be submitted for adjudication in December 2001 and that new contracts for the French part of the CERN site will be submitted for adjudication in the course of 2002.

48 CFR 15.406-2 - Certificate of current cost or pricing data.

Science.gov (United States)

2010-10-01

... cost or pricing data. 15.406-2 Section 15.406-2 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.406-2 Certificate of current cost or pricing data. (a) When certified cost or pricing data are...

Work and minor work contracts

CERN Document Server

1999-01-01

The Work and Minor Work contracts are all of the result-oriented type. The work is specified by CERN and the contractor is given full responsibility for its performance. The contracts are thus very similar to supply contracts. The re-tendering of the existing contracts is almost complete, except for some building maintenance contracts. A new cycle of re-tendering for some activities will be launched in the next twelve months. The total estimated expenditure in the year 2000 for the contracts referred to in this document is 27 750 000 Swiss francs at 1999 prices. The Finance Committee is invited: - to approve the proposed expenditure for the extension of contracts for which the estimated amount for the year 2000 exceeds 750 000 Swiss francs, namely those under references 1, 2, 3, 5, 7, 8, 9 and 23, highlighted in Table I; - to take note that all Work and Minor Work contracts have been tendered since 1 January 1994, except the small contracts shown under references 12 and 16 in Table I; - to take note that the ...

48 CFR 14.201-1 - Uniform contract format.

Science.gov (United States)

2010-10-01

... regulation that are inconsistent with the uniform contract format. (5) Firm-fixed-price or fixed-price with economic price adjustment acquisitions that use the simplified contract format (see 14.201-9). (b... shall retain it in the contract file. (See 4.1201(c).) Award by acceptance of a bid on the award portion...

48 CFR 11.701 - Supply contracts.

Science.gov (United States)

2010-10-01

... DESCRIBING AGENCY NEEDS Variation in Quantity 11.701 Supply contracts. (a) A fixed-price supply contract may authorize Government acceptance of a variation in the quantity of items called for if the variation is... items in a fixed-price contract, within allowable variations, if any. If a contractor delivers a...

Optimal Lease Contract for Remanufactured Equipment

Science.gov (United States)

Iskandar, B. P.; Wangsaputra, R.; Pasaribu, U. S.; Husniah, H.

2018-03-01

In the last two decades, the business of lease products (or equipment) has grown significantly, and many companies acquire equipment through leasing. In this paper, we propose a new lease contract under which a product (or equipment) is leased for a period of time with maximum usage per period (e.g. 1 year). This lease contract has only a time limit but no usage limit. If the total usage per period exceeds the maximum usage allowed in the contract, then the customer (as a lessee) will be charged an additional cost. In general, the lessor (OEM) provides a full coverage of maintenance, which includes PM and CM under the lease contract. It is considered that the lessor offers the lease contract for a remanufactured product. We presume that the price of the lease contract for the remanufactured product is much lower than that of a new one, and hence it would be a more attractive option to the customer. The decision problem for the lessee is to select the best option offered that fits to its requirement, and the decision problem for the lessor is find the optimal maintenance efforts for a given price of the lease option offered. We first find the optimal decisions independently for each party, and then the joint optimal decisions for both parties.

Structuring spot, short and long term gas contracts

International Nuclear Information System (INIS)

Gretener, N.M.

1996-01-01

A review of the core clauses of the modern natural gas purchase and sales contracts, was presented. There exists a wide variety of terms which can be used by a seller and a buyer to customize such a contract to suit particular circumstances. On the basis of length of term, gas contracts may classified as spot contracts having a term of 30 days or less, short term contracts having a term of 30 days to one to two years, and long term contracts having terms greater than two years. The three key elements which are applicable to all gas sales contracts are the contract price, the seller's obligation to deliver, and the buyer's obligation to accept. Other provisions that may be included in any gas sales contract in addition to the basic three were reviewed, including market pricing, load factor incentive pricing, seasonal pricing, pipeline demand charges, market shares, and the seller's right to decontract

Study of impacts of physical contracts and financial contracts on bidding strategies of GENCOs

International Nuclear Information System (INIS)

Xiaoling Chen; He, Y.; Song, Y.H.

2004-01-01

This paper studies the impacts of physical contracts and financial contracts on the bidding strategies of GENCOs, including Physical Bilateral Contracts, Contracts for Difference (CfDs), Call Options and Put Options under discriminatory pricing mechanism. The integrated bidding decision model is applied, which has three main modules - probabilistic local marginal price simulator, market-oriented unit commitment model and multi-criteria decision system. The numerical results show that the GENCO will choose different bidding strategies if it holds different types of contract. The results also suggest that CfDs have the best performance for risk alleviation. (author)

Oil prices, speculation, and fundamentals. Interpreting causal relations among spot and futures prices

International Nuclear Information System (INIS)

Kaufmann, Robert K.; Ullman, Ben

2009-01-01

A consensus that the world oil market is unified begs the question, where do innovations in oil prices enter the market? Here we investigate where changes in the price of crude oil originate and how they spread by examining causal relationships among prices for crude oils from North America, Europe, Africa, and the Middle East on both spot and futures markets. Results indicate that innovations first appear in spot prices for Dubai-Fateh and spread to other spot and futures prices while other innovations first appear in the far month contract for West Texas Intermediate and spread to other exchanges and contracts. Links between spot and futures markets are relatively weak and this may have allowed the long-run relationship between spot and future prices to change after September 2004. Together, these results suggest that market fundamentals initiated a long-term increase in oil prices that was exacerbated by speculators, who recognized an increase in the probability that oil prices would rise over time. (author)

Managing the risks associated with natural gas purchase contracts

International Nuclear Information System (INIS)

Brett, T.

2003-01-01

This presentation described different styles of gas contracts. When markets opened in 1986, many contracts were between end users and producers, and a few marketers. Typically, contracts were for a fixed price and term. In 1990, when gas futures contracts began trading on NYMEX, contracts began to have floating prices, and prices linked to NYMEX prices. Standard gas contracts were developed in the mid-late 1990s. This paper described the differences between plain retail gas contracts, retail gas contracts between mass marketers and end users, wholesale contracts, contracts between producers and marketers, transportation contracts and domestic contracts. Both contracting parties obtain business and legal advice from consultants and lawyers with knowledge in energy transactions. Master agreement contracts were also described with reference to the Gas EDI contract. Examples of changing regulatory requirements were also outlined along with some traps to avoid. Bundled transportation agreements are standard documents that can be negotiated in special circumstances to charge customers who fail to deliver. They should be considered as tariffs

75 FR 166 - Postal Product Price Changes

Science.gov (United States)

2010-01-04

... POSTAL REGULATORY COMMISSION [Docket No. CP2009-49; Order No. 371] Postal Product Price Changes...-filed Postal Service request to change prices for a Global Plus 2 contract. This notice provides an...: On December 21, 2009, the Postal Service filed a notice that prices for the Global Plus 2 contract at...

48 CFR 970.1504-2 - Price negotiation.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Price negotiation. 970.1504-2 Section 970.1504-2 Federal Acquisition Regulations System DEPARTMENT OF ENERGY AGENCY SUPPLEMENTARY REGULATIONS DOE MANAGEMENT AND OPERATING CONTRACTS Contracting by Negotiation 970.1504-2 Price negotiation. (a) Management and operating contract...

Evidence of efficiency in United States futures oil prices

International Nuclear Information System (INIS)

Duchock, C.J. Jr.

1991-01-01

The purpose of this study was to use the Perpetual Contract Data for West Texas Intermediate Crude Oil futures contracts in studies of the US crude oil futures market prices to determine whether the market was efficient. Analysis was done to determine whether the Perpetual Contract Data exhibited the characteristics of a random walk. Daily data on US crude oil perpetual futures contract prices were analyzed using standard statistical techniques and spectral analysis techniques. Spectral analysis was used on the first differences of daily data to determine whether the price change data contained cyclicality. Results showed no significant cycles or autocorrelation in the data, concluding there was evidence to indicate the Perpetual Contract Data for futures prices is a random walk. This is similar to the conclusion by Howard (1988) that spot West Texas Intermediate Crude prices follow a random walk. Thus, both the futures and spot markets efficiently capture current information in prices

Do changes in natural gas futures prices influence changes in natural gas spot prices?

International Nuclear Information System (INIS)

Herbert, J.H.

1993-01-01

Data on natural gas futures and spot markets are examined to determine if variability in price on futures markets influences variability in price on spot markets. Using econometric techniques, it is found that changes in futures contract prices do not precede changes in spot market prices. (Author)

48 CFR 252.217-7027 - Contract definitization.

Science.gov (United States)

2010-10-01

...., fixed-price or cost-and-fee) proposal and cost or pricing data supporting its proposal. (b) The schedule for definitizing this contract is as follows (insert target date for definitization of the contract... of the make-or-buy and subcontracting plans and cost or pricing data). (c) If agreement on a...

Price and access charge discrimination in electricity distribution: an application to the Chilean case

International Nuclear Information System (INIS)

Raineri, R.; Giaconi, P.

2005-01-01

This paper presents and analyzes a model of electricity distribution in Chile with three alternative regulatory pricing contract schemes for assigning a common capacity cost to final customers and competitive energy sellers. The first scheme involves Ramsey Pricing, while under the second and third schemes the monopoly chooses final prices and access charges subject either to a peak-load Physical Cap or a total revenue Price Cap constraint. In addition, we consider circumstances in which the regulator does not know consumer demand, the monopoly cannot price discriminate beyond a range defined by the marginal cost as a floor and the stand-alone cost as a ceiling, and access charges are set at the fully distributed cost allocation level currently in force. The model is calibrated with Chilean data, and demonstrates that in terms of social welfare the fully distributed cost contract scheme currently in effect can be improved by discriminatory pricing complemented by certain of the analyzed constraints. (author)

48 CFR 243.204-70-2 - Price ceiling.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Price ceiling. 243.204-70..., DEPARTMENT OF DEFENSE CONTRACT MANAGEMENT CONTRACT MODIFICATIONS Change Orders 243.204-70-2 Price ceiling. Unpriced change orders shall include a not-to-exceed price. [75 FR 48277, Aug. 10, 2010] ...

Hedging with futures contracts in the Brazilian soybean complex: BM&F vs. CBOT

Directory of Open Access Journals (Sweden)

Andréia Regina O. da Silva

2003-06-01

Full Text Available This article analyzes the effectiveness of hedging Brazilian soy oil, soy meal, and soybeans in the Chicago Board of Trade (CBOT and in the Brazilian Commodities and Futures Exchange (BM&F to reduce the risk of financial loss due to commodity price fluctuations. The econometric results show that a cross-hedging strategy using the BM&F soybean futures contract is an instrument of low effectiveness for managing soy oil and soy meal price risk. Despite low effectiveness, the estimates demonstrate total advantage for soy meal hedging operations using CBOT soy meal futures contracts rather than cross-hedging using BM&F soybean futures contracts. With some exceptions, the results are also more favorable for hedging soy oil with soy oil futures contracts at the CBOT rather than cross hedging with soybeans at the BM&F. Conversely, Brazilian traders hedging soybeans receive more effective risk protection by trading soybean futures contracts at the BM&F than by trading soybean futures contracts at the CBOT.

High prices on electric power now again?

International Nuclear Information System (INIS)

Doorman, Gerard

2003-01-01

Deregulation of the electric power market has yielded low prices for the consumers throughout the 1990s. Consumption has now increased considerably, but little new production has been added. This results in high prices in dry years, but to understand this one must understand price formation in the Nordic spot market. The high prices are a powerful signal to the consumers to reduce consumption, but they are also a signal to the producers to seize any opportunity to increase production. However, the construction of new dams etc. stirs up the environmentalists. Ordinary consumers may protect themselves against high prices by signing fixed-price contracts. For those who can tolerate price fluctuations, spot prices are a better alternative than the standard contract with variable price

Producers give prices a boost

International Nuclear Information System (INIS)

Anon.

1992-01-01

Uranium producers came alive in August, helping spot prices crack the $8.00 barrier for the first time since March. The upper end of NUKEM's price range actually finished the month at $8.20. Scrambling to fulfill their long-term delivery contracts, producers dominate the market. In the span of three weeks, five producers came out for 2 million lbs U3O8, ultimately buying nearly 1.5 million lbs. One producer accounted for over half this volume. The major factor behind rising prices was that producers required specific origins to meet contract obligations. Buyers willing to accept open origins created the lower end of NUKEM's price range

48 CFR 1415.406-70 - Department of the Interior price negotiation memorandum (PNM).

Science.gov (United States)

2010-10-01

... price negotiation memorandum (PNM). 1415.406-70 Section 1415.406-70 Federal Acquisition Regulations System DEPARTMENT OF THE INTERIOR CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 1415.406-70 Department of the Interior price negotiation memorandum (PNM). (a) Policy. In...

48 CFR 216.601 - Time-and-materials contracts.

Science.gov (United States)

2010-10-01

...-Hour Proposal Requirements—Non-Commercial Item Acquisition with Adequate Price Competition, with 252... contract type for non-commercial items if the price is expected to be based on adequate competition. [71 FR... of the contract or order; establishing fixed prices for portions of the requirement); and (D...

48 CFR 22.404-12 - Labor standards for contracts containing construction requirements and option provisions that...

Science.gov (United States)

2010-10-01

... contracting officer may include in the contract a separately specified pricing method that permits an... wage determination into the contract, and must apply the specific pricing method to calculate the contract price adjustment. An example of a contract pricing method that the contracting officer might...

48 CFR 970.1504-1 - Price analysis.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Price analysis. 970.1504-1 Section 970.1504-1 Federal Acquisition Regulations System DEPARTMENT OF ENERGY AGENCY SUPPLEMENTARY REGULATIONS DOE MANAGEMENT AND OPERATING CONTRACTS Contracting by Negotiation 970.1504-1 Price analysis. ...

The Contract Management Body of Knowledge: A Comparison of Contracting Competencies

Science.gov (United States)

2013-12-01

and supply chain management policies in an effort to deliver higher returns for their companies ( KPMG , 2012). As purchasing becomes increasingly more...conservation, hazardous materials , and ozone-depleting substances (NCMA, 2011). Contract Structures (1.5) has to do with identifying specific contract types...discusses time and material contracts as well as cost, performance, and delivery incentives. Incentive and award-fee contracts pertaining to fixed-price

Individual Preference Rankings Compatible with Prices, Income Distributions and Total Resources

DEFF Research Database (Denmark)

Balasko, Yves; Tvede, Mich

We consider the problem of determining the individual preference rankings that are necessarily implied by a dataset consisting of prices, income distributions and total resources. We show the equivalence between the compatibility with individual preference rankings and the existence of a solution...

14 CFR 1274.509 - Contract provisions.

Science.gov (United States)

2010-01-01

... bidder equivalent to five percent of the bid price. The “bid guarantee” shall consist of a firm... assurance that the bidder shall, upon acceptance of his bid, execute such contractual documents as may be... the contract price. A “performance bond” is one executed in connection with a contract to secure...

48 CFR 652.216-71 - Price Adjustment.

Science.gov (United States)

2010-10-01

...) The contract price may be increased or decreased in actual costs of direct service labor which result...] Government. Direct service labor costs include only the costs of wages and direct benefits (such as social... number] of this contract. Price adjustments will include only changes in direct service labor costs...

48 CFR 1652.215-70 - Rate Reduction for Defective Pricing or Defective Cost or Pricing Data.

Science.gov (United States)

2010-10-01

... Defective Pricing or Defective Cost or Pricing Data. 1652.215-70 Section 1652.215-70 Federal Acquisition... CLAUSES AND FORMS CONTRACT CLAUSES Texts of FEHBP Clauses 1652.215-70 Rate Reduction for Defective Pricing or Defective Cost or Pricing Data. As prescribed in 1615.407-1, the following clause shall be...

Supply Chain Bilateral Coordination with Option Contracts under Inflation Scenarios

Directory of Open Access Journals (Sweden)

Nana Wan

2015-01-01

Full Text Available There exist obvious changes in price and demand during the inflationary period, both of which are regarded as the key factors leading to supply chain uncertainty. In this paper, we focus our discussion on price increase and demand contraction caused by inflation, integrate the effect of inflation and option contracts within the model framework, and analyze how to use option contracts to achieve supply chain coordination under inflation scenarios. We consider a one-period two-stage supply chain consisting of one supplier and one retailer and explore the effect of inflation on the optimal ordering and production decisions under three different types of contracts: wholesale price contracts, option contracts, and portfolio contracts. Moreover, we explore the impact of option contracts on the supply chain through using wholesale price contracts model as the benchmark. We find that the retailer prefers adopting portfolio contracts, but the supplier prefers providing option contracts under inflation scenarios. Ultimately, option contracts will be implemented owing to the supplier’s market dominant position. In addition, we discuss the supply chain bilateral coordination mechanism with option contracts from the perspectives of two members and derive that option contracts can coordinate the supply chain and achieve Pareto improvement under inflation scenarios.

Contract design

International Nuclear Information System (INIS)

Bradley, P.

2006-01-01

The current state of the electric power industry in Ontario was discussed with particular reference to the procurement of contracts and why the Ontario Power Authority (OPA) must be contracting to resolve many of Ontario's electricity issues. As Ontario increasingly relies on imports and natural gas-fired generation, the price of electricity continues to rise given that supply is at a low level. In addition to the generation gap, there are also several transmission constrained areas in Ontario, particularly in the Greater Toronto Area (GTA). The OPA announced 2 projects totalling 1900 MW to relieve congestion. According to the Independent Electricity System Operator (IESO), the total potential opportunity for new generation by 2015 is about 5,000 to 7,000 megawatts. OPA is expected to launch procurement processes for up to 1000 MW of cogeneration, 250 MW of province-wide conservation initiatives, 1900 MW of generation in the western part of the GTA, and 600 MW of generation in downtown Toronto. New nuclear capacity is also anticipated in addition to renewables and conservation/demand management (CDM) initiatives. The OPA's competitive procurement processes will include requests for expressions of interest, requests for qualifications and requests for proposals. The challenge of balancing the technical complexities and realities of procuring generation assets with the need for a fair procurement process was discussed. Contracts will be designed to react to market signals and will include 3 styles: tariff style, tolling style and standard offer contract. OPA will make every effort to balance generator and ratepayer interests. 6 figs

Electricity transmission pricing. How contracts must reflect costs

International Nuclear Information System (INIS)

Shuttleworth, G.

1996-01-01

Two basic structures of transmission systems are distinguished: transmission channels offered through an integrated electric utility and open access offered over an independent network. The first structure allows the application of 'top-down pricing', where transmission prices are derived from customer tariffs less avoidable generation costs. Transmission prices in the second structure must be derived from a 'bottom-up' analysis of transmission costs, including building capacity, marginal losses, and congestion. 5 refs

14 CFR 1260.148 - Contract provisions.

Science.gov (United States)

2010-01-01

... equivalent to five percent of the bid price. The “bid guarantee” shall consist of a firm commitment such as a... bidder shall, upon acceptance of his bid, execute such contractual documents as may be required within... contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of...

28 CFR 70.48 - Contract provisions.

Science.gov (United States)

2010-07-01

... bidder equivalent to five percent of the bid price. The “bid guarantee” must consist of a firm commitment... that the bidder must, upon acceptance of his bid, execute such contractual documents as may be required... contract price. A “performance bond” is one executed in connection with a contract to secure fulfillment of...

48 CFR 15.403-3 - Requiring data other than certified cost or pricing data.

Science.gov (United States)

2010-10-01

... certified cost or pricing data. 15.403-3 Section 15.403-3 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.403-3 Requiring data other than certified cost or pricing data. (a)(1) In those acquisitions that do...

Structuring spot, short and long term gas contracts; CD-ROM ed.

Energy Technology Data Exchange (ETDEWEB)

Gretener, N.M.

1996-05-01

A review of the core clauses of the modern natural gas purchase and sales contracts, was presented. There exists a wide variety of terms which can be used by a seller and a buyer to customize such a contract to suit particular circumstances. On the basis of length of term, gas contracts may classified as spot contracts having a term of 30 days or less, short term contracts having a term of 30 days to one to two years, and long term contracts having terms greater than two years. The three key elements which are applicable to all gas sales contracts are the contract price, the seller`s obligation to deliver, and the buyer`s obligation to accept. Other provisions that may be included in any gas sales contract in addition to the basic three were reviewed, including market pricing, load factor incentive pricing, seasonal pricing, pipeline demand charges, market shares, and the seller`s right to decontract.

In search of the elusive long-term price

International Nuclear Information System (INIS)

Connor, M.J.; Combs, J.

1989-01-01

The Uranium Institute, WNFM, and past USCEA sessions described and compared existing price reporting systems. The McGraw-Hill conference led to a rather heated discussion as to the propriety of spot prices having the influence they do on amounts paid in long-term contracts. The Ux representative proposed a future's market as a way that producers could hedge against some of the uncertainty of volatile spot market. In discussing the search for the elusive long-term price, there are two interrelated issues. The first is obvious-the search for a starting or initializing price that is representative of recently-signed or pending long-term contracts. The second is less obvious, but perhaps more important-the search for a successful mechanism for determining later delivery values in long-term contracts. This paper addresses the question of pricing mechanisms first

Alternative pricing methodologies

International Nuclear Information System (INIS)

Anon.

1991-01-01

With the increased interest in competitive market forces and growing recognition of the deficiencies in current practices, FERC and others are exploring alternatives to embedded cost pricing. A number of these alternatives are discussed in this chapter. Marketplace pricing, discussed briefly here, is the subject of the next chapter. Obviously, the pricing formula may combine several of these methodologies. One utility of which the authors are aware is seeking a price equal to the sum of embedded costs, opportunity costs, line losses, value of service, FERC's percentage adder formula and a contract service charge

Rising prices squeeze gas marketer

Energy Technology Data Exchange (ETDEWEB)

Lunan, D.

2000-06-19

Apollo Gas, a Toronto-based gas marketer, is considering options to enhance unit holder value, including sale of its 21,000 gas supply contracts, just weeks after it was forced out of the Alberta market by rising gas prices. Although the company had reported first quarter revenues of more than $15 million and earnings through that period of about $2.1 million, increases of 33 per cent and 38 per cent respectively over the same period in 1999, the company is resigned to the fact that such performance markers are not likely to be reached again in the foreseeable future, hence the decision to sell. About 95 per cent of Apollo's current transportation service volumes are matched to existing fixed-price supply contract which are due to expire in November 2000. After that, it is about 75 per cent matched for the balance of the term of its customer contracts (mostly five years). This means that the company is exposed to market prices that are likely to continue to increase. If this prediction holds true, Apollo would be forced to purchase the unhedged volumes of gas it needs to service its customers in the spot market at prices higher than prices the company is charging to its customers.

Rising prices squeeze gas marketer

International Nuclear Information System (INIS)

Lunan, D.

2000-01-01

Apollo Gas, a Toronto-based gas marketer, is considering options to enhance unit holder value, including sale of its 21,000 gas supply contracts, just weeks after it was forced out of the Alberta market by rising gas prices. Although the company had reported first quarter revenues of more than $15 million and earnings through that period of about $2.1 million, increases of 33 per cent and 38 per cent respectively over the same period in 1999, the company is resigned to the fact that such performance markers are not likely to be reached again in the foreseeable future, hence the decision to sell. About 95 per cent of Apollo's current transportation service volumes are matched to existing fixed-price supply contract which are due to expire in November 2000. After that, it is about 75 per cent matched for the balance of the term of its customer contracts (mostly five years). This means that the company is exposed to market prices that are likely to continue to increase. If this prediction holds true, Apollo would be forced to purchase the unhedged volumes of gas it needs to service its customers in the spot market at prices higher than prices the company is charging to its customers

Market overview: Volume and prices remain low

International Nuclear Information System (INIS)

Anon.

1997-01-01

A summary of financial data for the uranium spot market in February 1997 is provided. Price ranges for the restricted and unrestricted markets, conversion, and separative work are listed, and total market volume and new contracts are noted. Transactions made are briefly described. Deals made and pending in the spot concentrates, medium and long-term, conversion, and markets are listed for U.S. and non-U.S. buyers

Dynamic pricing for demand response considering market price uncertainty

DEFF Research Database (Denmark)

Ghazvini, Mohammad Ali Fotouhi; Soares, Joao; Morais, Hugo

2017-01-01

Retail energy providers (REPs) can employ different strategies such as offering demand response (DR) programs, participating in bilateral contracts, and employing self-generation distributed generation (DG) units to avoid financial losses in the volatile electricity markets. In this paper......, the problem of setting dynamic retail sales price by a REP is addressed with a robust optimization technique. In the proposed model, the REP offers price-based DR programs while it faces uncertainties in the wholesale market price. The main contribution of this paper is using a robust optimization approach...

Price formation of the salmon aquaculture futures market

DEFF Research Database (Denmark)

Ankamah-Yeboah, Isaac; Nielsen, Max; Nielsen, Rasmus

2017-01-01

This study examines price formation of the internationally traded salmon futures exchange. Analyzing data from 2006 to 2015, the study identifies the co-integration relationship between the spot market price and 1–6-, 9- and 12-month futures contract prices. With exception of the 12-month maturity....... Analysis of the term structure of futures volatilities reveal that the shorter the length of the futures contract, the more volatility there is. This is because salmon prices exhibit short-term cyclical and seasonal patterns like other agricultural commodities. As such, salmon producers will be better off...

Game-Theoretic Models for Usage-based Maintenance Contract

Science.gov (United States)

Husniah, H.; Wangsaputra, R.; Cakravastia, A.; Iskandar, B. P.

2018-03-01

A usage-based maintenance contracts with coordination and non coordination between two parties is studied in this paper. The contract is applied to a dump truck operated in a mining industry. The situation under study is that an agent offers service contract to the owner of the truck after warranty ends. This contract has only a time limit but no usage limit. If the total usage per period exceeds the maximum usage allowed in the contract, then the owner will be charged an additional cost. In general, the agent (Original Equipment Manufacturer/OEM) provides a full coverage of maintenance, which includes PM and CM under the lease contract. The decision problem for the owner is to select the best option offered that fits to its requirement, and the decision problem for the agent is to find the optimal maintenance efforts for a given price of the service option offered. We first find the optimal decisions using coordination scheme and then with non coordination scheme for both parties.

Experiments on supply chain contracting: effects of contract type and fairness concerns

OpenAIRE

Arabacı, Özge; Arabaci, Ozge

2013-01-01

In this thesis, we conduct experiments with human decision makers on supply chain contracting. We consider a simple manufacturer-retailer supply chain scenario where the retailer faces the newsvendor problem. Building on Sahin and Kaya (2011), we compare the experimental performance of three contract types (wholesale price, buyback and revenue sharing contracts) between the firms with theoretical predictions, and among each other. We are interested in the manufacturer’s contract parameter dec...

24 CFR 242.52 - Construction contracts.

Science.gov (United States)

2010-04-01

...; a construction management contract with a guaranteed maximum price, the final costs of which are... 24 Housing and Urban Development 2 2010-04-01 2010-04-01 false Construction contracts. 242.52... MORTGAGE INSURANCE FOR HOSPITALS Construction § 242.52 Construction contracts. (a) Awarding of contract. A...

48 CFR 916.203-4 - Contract clauses.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Contract clauses. 916.203-4 Section 916.203-4 Federal Acquisition Regulations System DEPARTMENT OF ENERGY CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Fixed-Price Contracts 916.203-4 Contract clauses. (d)(2) The...

Statement to the Select Committee of the Legislature by the Minister of Energy on Ontario Hydro's uranium supply contracts with Denison Mines Ltd. and Preston Mines Ltd

International Nuclear Information System (INIS)

1978-01-01

Contracts between Ontario Hydro and two uranium suppliers, Denison Mines and Preston Mines, provide the utility with an assured supply of uranium from 1980 to 2011 at below world price, and give the suppliers financial aid in expanding their facilities. The total value of these contracts in 1978 dollars is $6.3 billion. Ontario Hydro decided to seek long-term supply contracts because there is expected to be continuing pressure on available uranium supplies wth steadily rising prices. The government of Ontario believes the contracts to be in the public interest. (LL)

Individual preference rankings compatible with prices, income distributions and total resources

DEFF Research Database (Denmark)

Balasko, Yves; Tvede, Mich

2010-01-01

of Afriat's inequalities that characterize the rationalizability of a finite set of individual consumption data. Exploiting this structure, we also give new proofs of the rationalizability of finite data sets where total resources are close to being collinear and the contractibility and pathconnectedness...

The price of electricity from private power producers: Stage 2, Expansion of sample and preliminary statistical analysis

Energy Technology Data Exchange (ETDEWEB)

Comnes, G.A.; Belden, T.N.; Kahn, E.P.

1995-02-01

The market for long-term bulk power is becoming increasingly competitive and mature. Given that many privately developed power projects have been or are being developed in the US, it is possible to begin to evaluate the performance of the market by analyzing its revealed prices. Using a consistent method, this paper presents levelized contract prices for a sample of privately developed US generation properties. The sample includes 26 projects with a total capacity of 6,354 MW. Contracts are described in terms of their choice of technology, choice of fuel, treatment of fuel price risk, geographic location, dispatchability, expected dispatch niche, and size. The contract price analysis shows that gas technologies clearly stand out as the most attractive. At an 80% capacity factor, coal projects have an average 20-year levelized price of $0.092/kWh, whereas natural gas combined cycle and/or cogeneration projects have an average price of $0.069/kWh. Within each technology type subsample, however, there is considerable variation. Prices for natural gas combustion turbines and one wind project are also presented. A preliminary statistical analysis is conducted to understand the relationship between price and four categories of explanatory factors including product heterogeneity, geographic heterogeneity, economic and technological change, and other buyer attributes (including avoided costs). Because of residual price variation, we are unable to accept the hypothesis that electricity is a homogeneous product. Instead, the analysis indicates that buyer value still plays an important role in the determination of price for competitively-acquired electricity.

Accounting for fuel price risk: Using forward natural gas prices instead of gas price forecasts to compare renewable to natural gas-fired generation

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2003-08-13

Against the backdrop of increasingly volatile natural gas prices, renewable energy resources, which by their nature are immune to natural gas fuel price risk, provide a real economic benefit. Unlike many contracts for natural gas-fired generation, renewable generation is typically sold under fixed-price contracts. Assuming that electricity consumers value long-term price stability, a utility or other retail electricity supplier that is looking to expand its resource portfolio (or a policymaker interested in evaluating different resource options) should therefore compare the cost of fixed-price renewable generation to the hedged or guaranteed cost of new natural gas-fired generation, rather than to projected costs based on uncertain gas price forecasts. To do otherwise would be to compare apples to oranges: by their nature, renewable resources carry no natural gas fuel price risk, and if the market values that attribute, then the most appropriate comparison is to the hedged cost of natural gas-fired generation. Nonetheless, utilities and others often compare the costs of renewable to gas-fired generation using as their fuel price input long-term gas price forecasts that are inherently uncertain, rather than long-term natural gas forward prices that can actually be locked in. This practice raises the critical question of how these two price streams compare. If they are similar, then one might conclude that forecast-based modeling and planning exercises are in fact approximating an apples-to-apples comparison, and no further consideration is necessary. If, however, natural gas forward prices systematically differ from price forecasts, then the use of such forecasts in planning and modeling exercises will yield results that are biased in favor of either renewable (if forwards < forecasts) or natural gas-fired generation (if forwards > forecasts). In this report we compare the cost of hedging natural gas price risk through traditional gas-based hedging instruments (e

33 CFR 211.109 - Contract of sale.

Science.gov (United States)

2010-07-01

... Navigation Project in Oklahoma, to Former Owners § 211.109 Contract of sale. Upon determination of the price... and deliver it to the applicant for acceptance. The contract of sale shall provide for the deposit of earnest money equal to twenty (20) percent of the price at which the land will be sold or the estimated...

ANALYSIS OF EXPECTED PRICE DYNAMICS BETWEEN FLUID MILK FUTURES CONTRACTS AND CASH PRICES FOR FLUID MILK

OpenAIRE

T. Randall FORTENBERY; Robert A. CROPP; Hector O. ZAPATA

1997-01-01

The objective of this study is to provide an empirical evaluation of the expected relationship between cash and futures prices for fluid milk. This is done using historic cash prices from 1988 to 1995, and making inferences about how futures prices would have behaved if they had traded during this sample period. Futures prices are simulated over the sample period based on two assumptions about futures market behavior for fluid milk. The first is that the futures market will essentially price ...

48 CFR 452.216-74 - Ceiling Price.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Ceiling Price. 452.216-74... SOLICITATION PROVISIONS AND CONTRACT CLAUSES Texts of Provisions and Clauses 452.216-74 Ceiling Price. As prescribed in 416.670, insert the following clause: Ceiling Price (FEB 1988) The ceiling price of this...

48 CFR 16.103 - Negotiating contract type.

Science.gov (United States)

2010-10-01

... CONTRACTING METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Selecting Contract Types 16.103 Negotiating contract... basic profit motive of business enterprise, shall be used when the risk involved is minimal or can be...) Contracts on a firm fixed-price basis other than those for major systems or research and development, and (3...

48 CFR 27.202-5 - Solicitation provisions and contract clause.

Science.gov (United States)

2010-10-01

... pricing data are obtained under 15.403; or (ii) Sealed bid solicitations only if the need for such... the contract. If a fixed-price incentive contract is contemplated, change “price” to “target cost and target profit” wherever it appears in the clause. The clause may be used in cost-reimbursement contracts...

Markets and pricing for interruptible electric power

International Nuclear Information System (INIS)

Gedra, T.W.; Varaiya, P.P.

1993-01-01

The authors propose a market for interruptible, or callable, forward contracts for electric power, in which the consumer grants the power supplier the right to interrupt a given unit of load in return for a price discount. The callable forward contracts are traded continuously until the time of use. This allows recourse for those customers with uncertain demand, while risk-averse consumers can minimize their price risk by purchasing early. Callable forward contracts are simple in form, and can be directly incorporated into the utility's economic dispatch procedure

Impact of Railroad Contracts on Grain Bids to Farmers

OpenAIRE

Steven D. Hanson; C. Phillip Baumel; Daniel Schnell

1989-01-01

The deregulation of railroads by the Staggers Rail Act of 1980 reversed nearly a century of prohibition of contracts between railroads shippers/receivers. This paper presents an analysis of the impact that railroad contracts have on grain bids to corn, wheat, and soybean farmers. The empirical results indicate that destination contracts had significant impacts on prices bid to corn and soybean farmers, while origin contracts had significant and large impacts on prices bid to wheat farmers.

Price

International Nuclear Information System (INIS)

Anon.

1991-01-01

The price terms in wheeling contracts very substantially, reflecting the differing conditions affecting the parties contracting for the service. These terms differ in the manner in which rates are calculated, the formulas used, and the philosophy underlying the accord. For example, and EEI study found that firm wheeling rates ranged from 20 cents to $1.612 per kilowatt per month. Nonfirm rates ranged from .15 mills to 5.25 mills per kilowatt-hour. The focus in this chapter is on cost-based rates, reflecting the fact that the vast majority of existing contracts are based on rate designs reflecting embedded costs. This situation may change in the future, but, for now, this fact can't be ignored

Pricing of electricity tariffs in competitive markets

International Nuclear Information System (INIS)

Keppo, J.; Raesaenen, M.

1999-01-01

In many countries electricity supply business has been opened for competition. In this paper we analyze the problem of pricing of electricity tariffs in these open markets, when both the customers' electricity consumption and the market price are stochastic processes. Specifically, we focus on regular tariff contracts which do not have explicit amounts of consumption units defined in the contracts. Therefore the valuation process of these contracts differs from the valuation of electricity futures and options. The results show that the more there is uncertainty about the customer's consumption, the higher the fixed charge of the tariff contract should be. Finally, we analyze the indication of our results to the different methods for estimating the customer's consumption in the competitive markets. Since the consumption uncertainties enter into the tariff prices, the analysis indicates that the deterministic standard load curves do not provide efficient methods for evaluating the customers' consumption in competitive markets

Arbitrage free pricing of forward and futures in the energy market

International Nuclear Information System (INIS)

Kloster, Kristian

2003-01-01

This thesis will describe a method for an arbitrage-free evaluation of forward and futures contracts in the Nordic electricity market. This is a market where it is not possible to hedge using the underlying asset which one normally would do. The electricity market is a relatively new market, and is less developed than the financial markets. The pricing of energy and energy derivatives are depending on factors like production, transport, storage etc. There are different approaches when pricing a forward contract in an energy market. With motivation from interest rate theory, one could model the forward prices directly in the risk neutral world. Another approach is to start out with a model for the spot prices in the physical world, and then derive theoretical forward prices, which then are fitted to observed forward prices. These and other approaches are described by Clewlow and Strickland in their book, Energy derivatives. This thesis uses the approach where I start out with a model for the spot price, and then derive theoretical forward prices. I use a generalization of the multifactor Schwartz model with seasonal trends and Ornstein Uhlenbeck processes to model the spot prices for electricity. This continuous-time model also incorporates mean-reversion, which is an important aspect of energy prices. Historical data for the spot prices is used to estimate my variables in the multi-factor Schwartz model. Then one can specify arbitrage-free prices for forward and futures based on the Schwartz model. The result from this procedure is a joint spot and forward price model in both the risk neutral and physical market, together with knowledge of the equivalent martingale measure chosen by the market. This measure can be interpreted as the market price of risk, which is of interest for risk management. In this setup both futures and forward contracts will have the same pricing dynamics, as the only difference between the two types of contracts is how the payment for the

48 CFR 1815.403-170 - Waivers of cost or pricing data.

Science.gov (United States)

2010-10-01

... data when contracting for Small Business Innovation Research (SBIR) program Phase II contracts. However... SPACE ADMINISTRATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing...

Spot market activity remains weak as prices continue to fall

International Nuclear Information System (INIS)

Anon.

1996-01-01

A summary of financial data for the uranium spot market in November 1996 is provided. Price ranges for the restricted and unrestricted markets, conversion, and separative work are listed, and total market volume and new contracts are noted. Transactions made are briefly described. Deals made and pending in the spot concentrates, medium and long-term, conversion, and markets are listed for U.S. and non-U.S. buyers. Spot market activity increased in November with just over 1.0 million lbs of U3O8 equivalent being transacted compared to October's total of 530,000 lbs of U3O8 equivalent. The restricted uranium spot market price range slipped from $15.50-$15.70/lb U3O8 last month to $14.85/lb - $15.25/lb U3O8 this month. The unrestricted uranium spot market price range also slipped to $14.85/lb - $15.00/lb this month from $15.00/lb - $15.45/lb in October. Spot prices for conversion and separative work units remained at their October levels

Choice of Contract Type and Other Policy Initiatives for Reducing Contract Prices

Science.gov (United States)

2013-09-01

system franchise model). Assume that the contractor retained ownership of the design rights so that subsequent procurement lots are not open to...2 1. The Weapon System Franchise Model ..........................................................2 2. The Agency Problem and...40 2. Contracting for Time vs . Contracting for Performance ..............................41 B. Empirical Analysis of DoD Service

Negotiation of coal price in 1987

Energy Technology Data Exchange (ETDEWEB)

Chimura, Akira

1987-12-01

Price and amount of coking coal for the fiscal year 1987 was announced. Contracted coals were 5 types with Australia and 4 types with Canada by end Jan, 1987. Average price came down from 47.72 US dollar/t to 43.57, i.e., 4.15 US dollar/t price decline to the previous year. In addition, the number of the branded coal are negotiated with Australia is 23 cases, 5 brands with Canada, 1 with South Australia, 2 with USSR, and 3 with China. General trend of the price is as follows: Coking coal price is influenced by the decrease of the Japanese steel production as well as the world-wide surplus of coal, and all import prices have gone down except semi-caking coal of USA. Price level is very high in USA and Canada, but is low in Australia and others. Recently, strikes are frequent in South Africa and Canada; profit of coal mines is coming down; US dollar rate is sinking; contract quantity is shrinking; these give an estimate that both general coal and coking coal prices will not so easily go down further. (10 tabs)

Contract farming with possible reneging in a developing country: Can it work?

Directory of Open Access Journals (Sweden)

Woonghee Tim Huh

2012-12-01

Full Text Available We consider a processed-food manufacturer that faces uncertain exogenous demand and procures a farm crop either from the outside market or from local farmers via contract farming. The contract price is determined at the beginning of the season when the market price is still uncertain. When the market price is realised, we allow the farmer the possibility of reneging from the contract, which occurs if the market price is sufficiently high. We show that granting farmers the option of reneging on the contract may improve the manufacturer's expected profit, and identify the conditions under which such an improvement can be expected.

48 CFR 52.214-27 - Price Reduction for Defective Certified Cost or Pricing Data-Modifications-Sealed Bidding.

Science.gov (United States)

2010-10-01

... reduction. This right to a price reduction is limited to that resulting from defects in data relating to... 48 Federal Acquisition Regulations System 2 2010-10-01 2010-10-01 false Price Reduction for... PROVISIONS AND CONTRACT CLAUSES Text of Provisions and Clauses 52.214-27 Price Reduction for Defective...

Nova Scotia electricity market : frameworks for renewable energy contracting and cogeneration contracting : discussion document

International Nuclear Information System (INIS)

2006-01-01

The recent Electricity Marketplace Governance Committee of Nova Scotia report issued a number of recommendations regarding renewable and cogeneration sales to retail consumers, as well as recommendations for top-up, spill rates and back-up rates to complement the operation of independent generating facilities. This discussion paper examined issues which need to be addressed in order to implement the recommendations. The discussion paper also included recommendations relating to the purchase of cogeneration output by the Nova Scotia Power Inc. (NSPI) under long term power purchase agreements. The aim of the paper was to provide a basis for the further discussion of issues in preparation for the development of future rules and regulations. The first part of the document identified ways for buyers and sellers to arrange contracts, as well as issues that need to be addressed at the institutional level to enable arrangements. Options for financial contracts and physical contracts were reviewed.The second part of the document examined pricing issues in the context of both financial and physical contract arrangements. Resolutions for both sets of options were proposed. Energy pricing principles were reviewed, as well as various pricing options and issues related to the analysis of price requirements. It was concluded that in order to support the safe, reliable and economic supply of electricity, the design of the electricity market should enable maximum flexibility in contractual arrangements and facilitate competition in ways that do not harm other parties

48 CFR 217.7404-2 - Price ceiling.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Price ceiling. 217.7404-2 Section 217.7404-2 Federal Acquisition Regulations System DEFENSE ACQUISITION REGULATIONS SYSTEM... Contract Actions 217.7404-2 Price ceiling. UCAs shall include a not-to-exceed price. ...

Lead lag relationships between futures and spot prices

Energy Technology Data Exchange (ETDEWEB)

Asche, Frank; Guttormsen, Atle G

2002-01-01

In this paper we examine the relationship between spot and futures prices. This is traditionally done by testing for cointegration with the Engle and Granger methodology, before one specifies an error correction models in order to draw inference about causality. This approach, although appealing for its simplicity, is problematic on at least two accounts. First, the approach is only valid given an exogeneity assumption, which is what one wants to test, and second, given that there are several contracts with different times to expiration, bivariate specifications cannot capture all the relevant information. We show that both problems can be avoided if the tests are carried out in a multivariate framework like the Johansen test. An empirical application is carried out on futures prices for gas oil. Findings indicate that futures prices leads spot prices, and that futures contracts with longer time to expiration leads contracts with shorter time to expiration. (author)

Avoiding revenue loss due to 'lesser of' contract clauses.

Science.gov (United States)

Stodolak, Frederick; Gutierrez, Henry

2014-08-01

Finance managers seeking to avoid lost revenue attributable to lesser-of-charge-or-fixed-fee (lesser-of) clauses in their contracts should: Identify payer contracts that contain lesser-of clauses. Prepare lesser-of lost-revenue reports for non-bundled and bundled rates. For claims with covered charges below the bundled rate, identify service codes associated with the greatest proportion of total gross revenue and determine new, higher charge levels for those codes. Establish an approach for setting charges for non-bundled fee schedules to address lost-revenue-related issues. Incorporate changes into overall strategic or hospital zero-based pricing modeling and parameters.

Pricing of path dependent derivatives with discretely monitored underlying assets

Science.gov (United States)

Choi, Hyomin

This dissertation presents two different approaches to path dependent option pricing with discrete sampling. Provided the underlying asset of a path dependent derivative contract follows an affine process, we use the forward characteristic method to evaluate its fair price. Our study shows that the valuation method is numerically accessible as long as the contract payoff is a linear combination of log return of its underlying asset price. We compute various examples of such contracts and give contract-tailored formulas that we use in these examples. In the second part, we consider variance options under stochastic volatility model. We analyze the difference between variance option prices with discrete and continuous sampling as a function of N, the number of observations made in the former. We find the series expansion of the difference with respect to 1/N and find its leading term. By adding this leading term to the value of continuously sampled variance option, we obtain a simple and well-understood approximation of discretely sample variance option price.

Endogenous Market Structures and Contract Theory. Delegation, principal-agent contracts, screening, franchising and tying

OpenAIRE

Etro Federico

2010-01-01

I study the role of unilateral strategic contracts for firms active in markets with price competition and endogenous entry. Traditional results change substantially when the market structure is endogenous rather than exogenous. They concern 1) contracts of managerial delegation to non-profit maximizers, 2) incentive principal-agent contracts in the presence of moral hazard on cost reducing activities, 3) screening contracts in case of asymmetric information on the productivity of the managers...

Approximation solutions for indifference pricing under general utility functions

NARCIS (Netherlands)

Chen, An; Pelsser, Antoon; Vellekoop, M.H.

2008-01-01

With the aid of Taylor-based approximations, this paper presents results for pricing insurance contracts by using indifference pricing under general utility functions. We discuss the connection between the resulting "theoretical" indifference prices and the pricing rule-of-thumb that practitioners

Approximate Solutions for Indifference Pricing under General Utility Functions

NARCIS (Netherlands)

Chen, A.; Pelsser, A.; Vellekoop, M.

2007-01-01

With the aid of Taylor-based approximations, this paper presents results for pricing insurance contracts by using indifference pricing under general utility functions. We discuss the connection between the resulting "theoretical" indifference prices and the pricing rule-of-thumb that practitioners

BUDGET NORMALIZATION AND PRICING FEATURES IN CONSTRUCTION

Directory of Open Access Journals (Sweden)

M. I. Gadzhieva

2016-01-01

Full Text Available It is proved that the pricing of the construction is different from the pricing system in the industry and other branches of economy, because it has different methodological and organizational approaches. It has been determined that the cost of construction is set on the stage of its design, in the process of concluding investment contracts (construction contracts, as well as directly during construction, major repairs of objects of capital construction, reconstruction and the implementation of certain types of construction and installation works. It has been found that the pricing mechanism in construction is based on the detailed legal and reference documents regulating material consumption rates and prices, taking into account sectoral, territorial and seasonal features of building production. It has been found that under inflation conditions the price index calculation of construction products for investment purposes is of great importance. Mandatory approval of all stakeholders of the construction production method for determining the price of the construction site is proposed.

76 FR 57677 - Defense Federal Acquisition Regulation Supplement; Increase the Use of Fixed-Price Incentive...

Science.gov (United States)

2011-09-16

...] RIN 0750-AH15 Defense Federal Acquisition Regulation Supplement; Increase the Use of Fixed-Price...-price incentive (firm target) contracts, with particular attention to share lines and ceiling prices... the use of fixed-price incentive (firm target) contracts, especially for acquisitions moving from...

Proposal for the renegotiation of a contract for the supply of eight coil casings for the barrel toroid magnet of the ATLAS detector

CERN Document Server

2001-01-01

This document concerns the renegotiation of a contract for the supply of eight coil casings for the Barrel Toroid Magnet of the ATLAS detector. The proposal for the award of a contract with ABB ENERTECH (CH) was presented to Finance Committee for information in September 1998 (CERN/FC/4089). In view of the developments outlined in this document, the Finance Committee is invited to agree to the renegotiation of a contract with ALSTOM SWITZERLAND (CH), for the supply of eight coil casings for the ATLAS Barrel Toroid Magnet for a total Ex-works price of 12 580 000 Swiss francs, subject to revision after 31 July 2001, with an option for an extra coil casing for an additional Ex-works price of 1 525 000 Swiss francs, subject to revision after 31 July 2001, bringing the total amount for the supply to 14 105 000 Swiss francs, subject to revision after 31 July 2001. The total amount of the contract, including transport to the integration site, will not exceed 14 490 000 Swiss francs, subject to revision after 31 July...

48 CFR 42.302 - Contract administration functions.

Science.gov (United States)

2010-10-01

... CONTRACT MANAGEMENT CONTRACT ADMINISTRATION AND AUDIT SERVICES Contract Administration Office Functions 42... officer. (5) Negotiate forward pricing rate agreements (see 15.407-3). (6) Negotiate advance agreements..., packaging, and packing. (38) Ensure contractor compliance with contractual quality assurance requirements...

Contract network in a balkanized grid

International Nuclear Information System (INIS)

Parkinson, T.W.

1992-01-01

Competition in electricity generation depends critically on access to transmission service at nondiscriminatory prices. Current access and pricing policies in the U.S. do not offer prospective private generators any guarantee of such access. Most proposals for reform, while improvements over current policies, attempt to provide for open access without addressing the underlying problems associated with loop flow and constraints in transmission networks. This paper identifies key design objectives for transmission access and pricing policies and cites critical weakness in one example reform proposal. As alternative proposal, based on contract networks, does address the underlying pricing problems. This paper shows that policies based on contract networks would meet the required objectives and could be feasibly implemented even in the Balkanized grid of U.S. investor-owned utilities. 10 refs

48 CFR 52.249-7 - Termination (Fixed-Price Architect-Engineer).

Science.gov (United States)

2010-10-01

... Architect-Engineer). 52.249-7 Section 52.249-7 Federal Acquisition Regulations System FEDERAL ACQUISITION... Clauses 52.249-7 Termination (Fixed-Price Architect-Engineer). As prescribed in 49.503(b), insert the following clause in solicitations and contracts for architect-engineer services when a fixed-price contract...

Impacts of government subsidies on pricing and performance level choice in Energy Performance Contracting: A two-step optimal decision model

International Nuclear Information System (INIS)

Lu, Zhijian; Shao, Shuai

2016-01-01

Highlights: • An ESCO optimal decision model considering governmental subsidies is proposed. • Optimal price and performance level are deduced via a two-stage model. • Demand, profit, and performance level increase with increasing subsidies. • ESCO’s market strategy should firstly focus on high energy consumption industries. • Governmental subsidies standard in different industries should be differentiated. - Abstract: Government subsidies generally play a crucial role in pricing and the choice of performance levels in Energy Performance Contracting (EPC). However, the existing studies pay little attention to how the Energy Service Company (ESCO) prices and chooses performance levels for EPC with government subsidies. To fill such a gap, we propose a joint optimal decision model of pricing and performance level in EPC considering government subsidies. The optimization of the model is achieved via a two-stage process. At the first stage, given a performance level, ESCOs choose the best price; and at the second stage, ESCOs choose the optimal performance level for the optimal price. Furthermore, we carry out a numerical analysis to illuminate such an optimal decision mechanism. The results show that both price sensitivity and performance level sensitivity have significant effects on the choice of performance levels with government subsidies. Government subsidies can induce higher performance levels of EPC, the demand for EPC, and the profit of ESCO. We suggest that ESCO’s market strategy should firstly focus on high energy consumption industries with government subsidies and that government subsidies standard adopted in different industries should be differentiated according to the market characteristics and energy efficiency levels of various industries.

Unconscionability, unfair exploitation and the nature of contract theory: comments on Melvin Eisenberg's ‘Foundational Principles of Contract Law'

NARCIS (Netherlands)

Hesselink, M.W.

2013-01-01

This short paper contains comments prepared for the 'Foundational Principles of Contract Law Roundtable’ held at Berkeley in January 2013. It discusses the relationships between contract law and democracy, between contract prices and human dignity, and between the American doctrine of

Custom dairy heifer grower industry characteristics and contract terms.

Science.gov (United States)

Wolf, C A

2003-09-01

This study examines a national survey of professional custom heifer growers. Sixty-five respondents from 23 states provided information on operation size and characteristics, management practices, and contract terms. Responding operation current heifer inventories ranged from 30 to 20,000 heifers and the average operation had more than 1200 heifers on-farm. The regional pattern of operation size was similar to the regional pattern of dairy farm size with heifer grower operations in the West and South regions being larger, on average, than those in the Midwest and Northeast regions. On average, 71% of total income was derived from the heifer-growing enterprise. Operations in the Northeast region derived the highest percentage of income from heifer growing while operations in the South region derived the least income from heifer growing activities. Many operations entered business to utilize excess facilities, labor, or feed. A majority of the operations had two to five dairy farm clients. Sixty-nine percent of respondents used some form of written contract. Just over 50% of the respondents indicated that a set daily charge per heifer per day was the primary type of contract payment. Although the most common charge was dollars 1.50 per heifer per day, average daily charge was dollars 1.52/heifer. Operations that took heifers from prior to weaning through to prefresh charged a weighted average daily charge of dollars 1.60 per heifer. Explaining price charges as a function of characteristics and contract terms revealed that size and number of clients were negatively related to price while specialization in heifer growing was positively related to price charged.

48 CFR 215.403-3 - Requiring information other than cost or pricing data.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Requiring information other than cost or pricing data. 215.403-3 Section 215.403-3 Federal Acquisition Regulations System... CONTRACTING BY NEGOTIATION Contract Pricing 215.403-3 Requiring information other than cost or pricing data...

Market, trading and coal price

International Nuclear Information System (INIS)

Muller, J.C.; Cornot-Gandolphe, S.; Labrunie, L.; Lemoine, St.; Vandijck, M.

2006-01-01

The coal world experienced a true upheaval in the past five years World coal consumption went up 28 % between 2000 and 2005, as a result of the strong growth in Chinese demand. The growth should continue in the coming years: electrical plant builders' orders are mainly for coal. The regained interest in coal is based on the constraints experienced by competing energies (increase in oil and natural gas prices, geopolitical uncertainties, supply difficulties) and by the abundant reserves of coal in the world and the competitiveness of its price. The strong growth in world coal demand comes with a change in rules governing steam coal trading. While long term bilateral agreements were most common until the late nineties, there has been a true revolution in coal marketing since 2000: spot contracts, stock exchange emergence and futures contracts, price indexes. In a few years, the steam coal market has become a true commodities market, overtaking many more goods. The price of coal has also gone through strong variations since 2003. Whereas the price had been stable for decades, in 2004 the strong increase in China' s demand for coal and iron ore resulting in transport shortage, caused a strong increase in CAF coal prices. Since then, prices have gone down, but remain higher than the Eighties and Nineties levels. In spite of the increase, coal remains available at more competitive prices than its competing energies. (authors)

IPP fuel contracts - creating certain contracts for uncertain times

Energy Technology Data Exchange (ETDEWEB)

Coddington, I. [Coddington International Pty. Ltd., Milsons Point, NSW (Australia)

1998-12-31

Coal contracts for the new Asian Independent Power Producers (IPPs) are examined. Since most IPPs will be selling to state electricity utilities, often in competition with power plant using other fuels, coal based IPPs must negotiate advantageous coal supply contracts several years before the commissioning of a plant, and must ensure security of supply for at least the life of the construction loan. A more recent trend in the developed world is the Merchant IPP, where there is no guaranteed electricity sale. Lenders are wary of IPPs relying an imported coal, and insist on binding fuel contracts, while coal companies are wary of the quantity of information demanded by these lenders. A full understanding of the risks involved is needed; and a method of price indexation for the contracts. Contracts must also specify security of supply, coal quality, freight contracts and other details. 2 figs.

Recent trends in gas contracting in North America

International Nuclear Information System (INIS)

Maffitt, D. W.

1999-01-01

An overview of recent business trends impacting upon natural gas contracting in North America is provided. Among the trends examined are supply and demand, natural gas prices, access to the U.S. market, gas sales contracts, electronic gas sales, retail level marketing, the growing popularity of 'one-stop shopping', and standardization of contracts. Overall, supplies appear to be adequate for now, demand is growing, prices are volatile, short-term contracts are more popular than long-term ones, electronic commerce combined with one-stop shopping marketing at the retail level is growing, and standardization of spot and short-term gas sales contracts is slowly being accepted by industry as a means to to improve the efficiency of the market. 12 refs

48 CFR 1352.216-77 - Ceiling price.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Ceiling price. 1352.216-77... SOLICITATION PROVISIONS AND CONTRACT CLAUSES Text of Provisions and Clauses 1352.216-77 Ceiling price. As prescribed in 48 CFR 1316.601-70 and 1316.602-70, insert the following clause: Ceiling Price (APR 2010) The...

Price formation in electricity forward markets and the relevance of systematic forecast errors

International Nuclear Information System (INIS)

Redl, Christian; Haas, Reinhard; Huber, Claus; Boehm, Bernhard

2009-01-01

Since the liberalisation of the European electricity sector, forward and futures contracts have gained significant interest of market participants due to risk management reasons. For pricing of these contracts an important fact concerns the non-storability of electricity. In this case, according to economic theory, forward prices are related to the expected spot prices which are built on fundamental market expectations. In the following article the crucial impact parameters of forward electricity prices and the relationship between forward and future spot prices will be assessed by an empirical analysis of electricity prices at the European Energy Exchange and the Nord Pool Power Exchange. In fact, price formation in the considered markets is influenced by historic spot market prices yielding a biased forecasting power of long-term contracts. Although market and risk assessment measures of market participants and supply and demand shocks can partly explain the futures-spot bias inefficiencies in the analysed forward markets cannot be ruled out. (author)

LHC Civil Engineering Construction Contracts Cost Monitoring and Budget Forecasting

CERN Document Server

Skelton, K

2000-01-01

The Civil Engineering project for the LHC is estimated at 350 MCHF, of which about 316 MCHF is for the construction contracts. These contracts are based on a system of remeasurement whereby the consultant estimates the quantities required for the construction of each structure and the contractor commits himself to the unit price, which define the initial tender price. There are many factors that affect the final price for these contracts, from increases or decreases in quantities of the estimated amounts in the original bill of quantities to variations to the contract. This paper will look at how these factors change costs at the individual level of a structure to the overall costs of the contract. It will look at how the Civil Engineering Group monitors these changes to calculate cash flows and final costs and how this information is used as a basis for budget forecasts.

48 CFR 232.704-70 - Incrementally funded fixed-price contracts.

Science.gov (United States)

2010-10-01

... ACQUISITION REGULATIONS SYSTEM, DEPARTMENT OF DEFENSE GENERAL CONTRACTING REQUIREMENTS CONTRACT FINANCING...'s decision and terminate for the convenience of the Government. (c) The contracting officer shall...

48 CFR 217.7505 - Limitations on price increases.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Limitations on price... Acquisition of Replenishment Parts 217.7505 Limitations on price increases. This section provides implementing... award, on a sole source basis, a contract for any centrally managed replenishment part when the price of...

48 CFR 852.236-83 - Payments under fixed-price construction contracts (including NAS).

Science.gov (United States)

2010-10-01

... (CPM) network. (4) The CPM network shall include a separate cost loaded activity for adjusting and... shall show on the critical path method (CPM) network the total cost of the guarantee period services in... contracting officer. The activity on the CPM shall have money only and not activity time. (ii) The contractor...

41 CFR 105-72.505 - Cost and price analysis.

Science.gov (United States)

2010-07-01

... 41 Public Contracts and Property Management 3 2010-07-01 2010-07-01 false Cost and price analysis... § 105-72.505 Cost and price analysis. Some form of cost or price analysis shall be made and documented in the procurement files in connection with every procurement action. Price analysis may be...

Terms of payment in the sales contract

OpenAIRE

Harmáčková, Iva

2009-01-01

This thesis makes an analysis of price and terms of payment in the sales contract. Both elements are conceived in terms of legal framework and in terms of importance for the parties to an international sales contract. The theoretical part deals with the role of the sales contract in business relations, structure and legal norms of the international sales contract. The practical part includes an analysis of specific international sales contract.

Multi-factor energy price models and exotic derivatives pricing

Science.gov (United States)

Hikspoors, Samuel

The high pace at which many of the world's energy markets have gradually been opened to competition have generated a significant amount of new financial activity. Both academicians and practitioners alike recently started to develop the tools of energy derivatives pricing/hedging as a quantitative topic of its own. The energy contract structures as well as their underlying asset properties set the energy risk management industry apart from its more standard equity and fixed income counterparts. This thesis naturally contributes to these broad market developments in participating to the advances of the mathematical tools aiming at a better theory of energy contingent claim pricing/hedging. We propose many realistic two-factor and three-factor models for spot and forward price processes that generalize some well known and standard modeling assumptions. We develop the associated pricing methodologies and propose stable calibration algorithms that motivate the application of the relevant modeling schemes.

Pricing-Decision and Coordination Contract considering Product Design and Quality of Recovery Product in a Closed-Loop Supply Chain

OpenAIRE

Qingming Zou; Guangyu Ye

2015-01-01

In a closed-loop supply chain consisting of a manufacturer and a retailer, this paper studies the pricing strategies and coordination mechanism of supply chain when the remanufacturing cost is random caused by the proportion of reusability parts in design stage and quality condition of recycling product. The results show that the wholesale price and retail price are negative correlation, while the recycling rate and total profit of supply chain system are positive correlation with the proport...

Transmission and capacity pricing and constraints

International Nuclear Information System (INIS)

Fusco, M.

1999-01-01

A series of overhead viewgraphs accompanied this presentation which discussed the following issues regarding the North American electric power industry: (1) capacity pricing transmission constraints, (2) nature of transmission constraints, (3) consequences of transmission constraints, and (4) prices as market evidence. Some solutions suggested for pricing constraints included the development of contingent contracts, back-up power in supply regions, and new line capacity construction. 8 tabs., 20 figs

Electricity pricing: optimal operation and investment by industrial consumers

Energy Technology Data Exchange (ETDEWEB)

Outhred, H.R.; Kaye, R.J.; Sutanto, D.; Manimaran, R.; Bannister, C.H.; Lee, Y.B.

1988-08-01

Ongoing research in the areas of economically efficient electricity pricing and industrial consumer response is described. A new electricity pricing theory is described that incorporates future uncertainty and intertemporal linkages between decisions. It indicates that electricity prices should contain two terms - short-run marginal cost plus a term that reflects how each particular decision is likely to affect future global welfare. A practical implementation using spot prices and forward contracts plus financial instruments for risk sharing and decision coordination is explored, and a procedure for developing long-term pricing policy is considered. The operation of industrial plant has been investigated and models developed to optimize plant behaviour in response to spot prices and forward contracts for electricity. These models are described and results of simulation studies discussed. The economic efficiency and risk sharing advantages of this advanced tariff structure compared with a conventional time-of-use tariff are illustrated.

Anatomy of a cogeneration deal : natural gas contracts and regulatory issues

International Nuclear Information System (INIS)

Brett, J.T.

1999-01-01

The special features of gas contracts for cogeneration projects were discussed. It was recommended that a gas power purchase contract should be entered early in a project development cycle to justify requests for new pipeline facilities. Issues regarding buyer's commitments, market prices, and volumes were also discussed. In the event of failure to deliver, the contract should include provisions which would make it possible to source gas elsewhere, terminate the contract or seek damages. This paper also discussed various pricing provisions in a gas commodity contract, security of supplies, gas transportation arrangements, regulatory considerations, outstanding issues, and IMO (independent market operator) requirements

Bottlenecks and contracts

International Nuclear Information System (INIS)

2001-01-01

The report surveys the central points in the literature about contracts on geographical price differences and transmission rights in the power market. It is commonly believed that such contracts may reduce market power and contribute to better network investments. The theoretical debate is in part unfinished and largely based on very stylised assumptions. There is some indication that such contracts may not be very useful in practice. But they may be useful in some cases, perhaps in particular when power is transported outside limited surplus areas and for certain investment decisions where there is no systems operator with a natural responsibility

Oil price volatility: An Econometric Analysis of the WTI Market

International Nuclear Information System (INIS)

Hache, Emmanuel; Lantz, Frederic

2011-04-01

The aim of this paper is to study the oil price volatility in West Texas Intermediate (WTI) market in the US. By using statistical and econometric tools, we first attempt to identify the long-term relationship between WTI spot prices and the prices of futures contracts on the New York Mercantile Exchange (NYMEX). Subsequently we model the short-term dynamic between these two prices and this analysis points up several breaks. On this basis, a short term Markov Switching Vectorial Error Correction model (MS-VECM) with two distinct states (standard state and crisis state) has been estimated. Finally we introduce the volumes of transactions observed on the NYMEX for the WTI contracts and we estimate the influence of the non-commercial players. We conclude that the hypothesis of an influence of noncommercial players on the probability for being in the crisis state cannot be rejected. In addition, we show that the rise in liquidity of the first financial contracts, as measured by the volume of open interest, is a key element to understand the dynamics in market prices. (authors)

22 CFR 201.63 - Maximum prices for commodities.

Science.gov (United States)

2010-04-01

... actually incurred in moving the commodities supplied from the point of purchase to a position alongside or... between those points. (g) Commodity price subject to escalation. If a purchase contract contains a price.... prevailing market price—U.S. source. The purchase price for a commodity, the source of which is the United...

48 CFR 52.243-1 - Changes-Fixed-Price.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 2 2010-10-01 2010-10-01 false Changes-Fixed-Price. 52....243-1 Changes—Fixed-Price. As prescribed in 43.205(e), insert the following clause: Changes—Fixed-Price (AUG 1987) (a) The Contracting Officer may at any time, by written order, and without notice to...

The Department of Energy's implementation of contract reform: Problems with the fixed-price contract to clean up Pit 9. Hearings before the Subcommittee on Oversight and Investigations of the Committee on Commerce, House of Representatives, One Hundred Fifth Congress, First session

International Nuclear Information System (INIS)

1997-01-01

This is the first of 2 days of hearings to look into the problems associated with the fixed-price contract put in place to deal with the cleanup of Pit 9 at Idaho National Engineering and Environmental Laboratory. The committee hears testimony from 7 witnesses, most of whom are accompanied by additional people. The remediation work on this project is presently behind schedule, over budget, and in a work slowdown because of funding concerns. Congress is interested in understanding what has gone wrong with this process, because other large contracts have been let with similar type fixed-cost provisions, and there is growing concern about the viability of such contracts. provisions, and there is growing concern about the viability of such contracts

Understanding Contract Audits: An Experimental Approach

NARCIS (Netherlands)

Bertrand, R.M.M.; Schram, A.J.H.C.; Vaassen, E.H.J.

2013-01-01

A contract audit is a buyer-initiated audit of prices and other conditions, which aims to decrease the information asymmetry between a buyer and a seller. Contract audits are frequently used in monopolistic or oligopolistic markets, as in government procurement. We draw upon three distinct

Understanding contract audits : An experimental approach

NARCIS (Netherlands)

Bertrand, R.M.M.; Schram, A.J.H.C.; Vaassen, E.H.J.

2013-01-01

A contract audit is a buyer-initiated audit of prices and other conditions, which aims to decrease the information asymmetry between a buyer and a seller. Contract audits are frequently used in monopolistic or oligopolistic markets as in government procurement. We draw upon three distinct

75 FR 13422 - Federal Acquisition Regulation; FAR Case 2008-015, Payments Under Fixed-Price Architect-Engineer...

Science.gov (United States)

2010-03-19

...-AL26 Federal Acquisition Regulation; FAR Case 2008-015, Payments Under Fixed-Price Architect-Engineer..., Payments Under Fixed-Price Architect-Engineer Contracts, currently requires contracting officers to... judgment regarding the amount of payment withheld to apply under fixed-price architect-engineer (A-E...

On the application of copula in modeling maintenance contract

International Nuclear Information System (INIS)

Iskandar, B P; Husniah, H

2016-01-01

This paper deals with the application of copula in maintenance contracts for a nonrepayable item. Failures of the item are modeled using a two dimensional approach where age and usage of the item and this requires a bi-variate distribution to modelling failures. When the item fails then corrective maintenance (CM) is minimally repaired. CM can be outsourced to an external agent or done in house. The decision problem for the owner is to find the maximum total profit whilst for the agent is to determine the optimal price of the contract. We obtain the mathematical models of the decision problems for the owner as well as the agent using a Nash game theory formulation. (paper)

Real-time Pricing in Power Markets

DEFF Research Database (Denmark)

Boom, Anette; Schwenen, Sebastian

We examine welfare e ects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

Real-time Pricing in Power Markets

DEFF Research Database (Denmark)

Boom, Anette; Schwenen, Sebastian

We examine welfare eects of real-time pricing in electricity markets. Before stochastic energy demand is known, competitive retailers contract with nal consumers who exogenously do not have real-time meters. After demand is realized, two electricity generators compete in a uniform price auction...... to satisfy demand from retailers acting on behalf of subscribed customers and from consumers with real-time meters. Increasing the number of consumers on real-time pricing does not always increase welfare since risk-averse consumers dislike uncertain and high prices arising through market power...

Migration of Price Discovery With Constrained Futures Markets

OpenAIRE

Anthony D. Hall; Paul Kofman; Steve Manaster

2001-01-01

This paper investigates the information content of futures option prices when the futures price is regulated while the futures option price itself is not. The New York Board of Trade provides the empirical setting for this type of dichotomy in regulation. Most commodity derivatives markets regulate prices of all derivatives on a particular commodity simultaneously. NYBOT has taken an almost unique position by imposing daily price limits on their futures contracts while leaving the options pri...

41 CFR 51-2.7 - Fair market price.

Science.gov (United States)

2010-07-01

... 41 Public Contracts and Property Management 1 2010-07-01 2010-07-01 true Fair market price. 51-2.7... WHO ARE BLIND OR SEVERELY DISABLED § 51-2.7 Fair market price. (a) The Committee is responsible for determining fair market prices, and changes thereto, for commodities and services on the Procurement List. The...

Complexity, Contract Design and Incentive Design in the Construction Management Industry

OpenAIRE

Beg, Zeshawn Afsari

2015-01-01

In this paper I examine how one construction management company uses contract design and incentive design to respond to aspects of task complexity and relationship complexity present in its construction projects. In terms of contract design, I find that the company is unable to increase its use of cost-plus pricing when faced with technically complex projects. Instead, the company uses increased pre-execution design modification and price markups when technically complex projects are contract...

48 CFR 46.710 - Contract clauses.

Science.gov (United States)

2010-10-01

... QUALITY ASSURANCE Warranties 46.710 Contract clauses. The clauses and alternates prescribed in this... research and development contract is contemplated and the use of a warranty clause has been approved under... performance specifications or design are of major importance; a fixed-price supply, service, or research and...

Contract Attorneys Course Deskbook. Volume 1

Science.gov (United States)

2007-06-21

included in a contract in violation of statutory or regulatory criteria will be read out of a contract. Empresa de Viacao Terceirense, ASBCA No. 49827...for upward and downward revision of the stated contract price upon the occurrence of specified contingencies. See Transportes Especiales de ...4th Infantry Division, Fort Hood Texas, 2002-2005; Assistant Operations Officer/Test Control Officer, Military Entrance Processing Station, Des

Stochastic modeling of financial electricity contracts

International Nuclear Information System (INIS)

Benth, Fred Espen; Koekebakker, Steen

2008-01-01

We discuss the modeling of electricity contracts traded in many deregulated power markets. These forward/futures type contracts deliver (either physically or financially) electricity over a specified time period, and is frequently referred to as swaps since they in effect represent an exchange of fixed for floating electricity price. We propose to use the Heath-Jarrow-Morton approach to model swap prices since the notion of a spot price is not easily defined in these markets. For general stochastic dynamical models, we connect the spot price, the instantaneous-delivery forward price and the swap price, and analyze two different ways to apply the Heath-Jarrow-Morton approach to swap pricing: Either one specifies a dynamics for the non-existing instantaneous-delivery forwards and derives the implied swap dynamics, or one models directly on the swaps. The former is shown to lead to quite complicated stochastic models for the swap price, even when the forward dynamics is simple. The latter has some theoretical problems due to a no-arbitrage condition that has to be satisfied for swaps with overlapping delivery periods. To overcome this problem, a practical modeling approach is analyzed. The market is supposed only to consist of non-overlapping swaps, and these are modelled directly. A thorough empirical study is performed using data collected from Nord Pool. Our investigations demonstrate that it is possible to state reasonable models for the swap price dynamics which is analytically tractable for risk management and option pricing purposes, however, this is an area of further research. (author)

48 CFR 16.403-2 - Fixed-price incentive (successive targets) contracts.

Science.gov (United States)

2010-10-01

... target cost plus the firm target profit as a guide. (ii) If negotiation of a firm fixed price is... pricing information is not sufficient to permit the negotiation of a realistic firm target cost and profit...; and (2) Cost or pricing information adequate for establishing a reasonable firm target cost is...

Incentive contracts for development projects

Science.gov (United States)

Finley, David T.; Smith, Byron; DeGroff, B.

2012-09-01

Finding a contract vehicle that balances the concerns of the customer and the contractor in a development project can be difficult. The customer wants a low price and an early delivery, with as few surprises as possible as the project progresses. The contractor wants sufficient cost and schedule to cover risk. Both want to clearly define what each party will provide. Many program offices do not want to award cost plus contracts because their funding sources will not allow it, their boards do not want an open ended commitment, and they feel like they lose financial control of the project. A fixed price incentive contract, with a mutually agreed upon target cost, provides the owner with visibility into the project and input into the execution of the project, encourages both parties to save costs, and stimulates a collaborative atmosphere by aligning the respective interests of customers and contractors.

Claims in civil engineering contracts

CERN Document Server

Speirs, N A

1999-01-01

This paper considers claims arising during civil engineering construction contracts. The meaning of the word 'claim' is considered and its possible implications for additional cost and time to completion. The conditions of the construction contract selected will influence the risk apportionment between contractor and client and the price offered by the contractor for the work. Competitive bidding constraints and profit margins in the construction industry, however, may also influence the price offered. This in turn can influence the likelihood of claims arising. The client from his point of view is concerned to complete the work within an agreed time and budget. The circumstances under which claims may arise are reviewed in relation to typical conditions of contract. These circumstances are then related to the CERN LHC civil works. Ways of avoiding claims, where this is possible, are considered. Finally, the means of evaluation of claims and their settlement are considered.

Business Dynamics and Informal Contracts: Experimental Evidence from the Cowpea Street Food Sector in West Africa

OpenAIRE

Otoo, Miriam; Fulton, Joan R.; Wu, Steven Y.; Ibro, Germaine

2010-01-01

We use field experiments in Niger to investigate the nature and efficiency of contractual structures in market transactions between kossai vendors and cowpea grinders (key input suppliers). Three contractual structures were employed: gift contract, standard price contract and discretionary bonus contract (most incomplete). Gift contracts and standard price contracts involve an upfront payment of grinding fees where discretionary bonus contracts involve payment after the quality of service is ...

The futures and forward price differential in the Nordic electricity market

Energy Technology Data Exchange (ETDEWEB)

Wimschulte, Jens [University of Regensburg (Germany)

2010-08-15

This note investigates price differentials between electricity forwards and portfolios of short-term futures with identical delivery periods at the Nordic Power Exchange (Nord Pool). Since both contracts are traded at the same exchange, there is no influence of, for example, different market microstructure and default risk when examining the effect of the marking-to-market of futures on the price differential. Although the prices of the futures portfolios are, on average, below the corresponding forward prices, these price differentials are, on average, not statistically significant and not economically significant when taking transaction costs into account. Given the characteristics of the electricity contracts under observation, this is consistent with the predictions of the model and indicates efficient pricing in the Nord Pool forward market in contrast to previous results. (author)

The futures and forward price differential in the Nordic electricity market

International Nuclear Information System (INIS)

Wimschulte, Jens

2010-01-01

This note investigates price differentials between electricity forwards and portfolios of short-term futures with identical delivery periods at the Nordic Power Exchange (Nord Pool). Since both contracts are traded at the same exchange, there is no influence of, for example, different market microstructure and default risk when examining the effect of the marking-to-market of futures on the price differential. Although the prices of the futures portfolios are, on average, below the corresponding forward prices, these price differentials are, on average, not statistically significant and not economically significant when taking transaction costs into account. Given the characteristics of the electricity contracts under observation, this is consistent with the predictions of the model and indicates efficient pricing in the Nord Pool forward market in contrast to previous results. (author)

TRANSFER PRICES AND MARKET VALUE OF REINSURANCE TRANSACTIONS

Directory of Open Access Journals (Sweden)

Andreea - Lavinia CAZACU (NEAMȚU

2017-12-01

Full Text Available As a result of the increasingly sustainable economic and financial crisis, which is characterized by the diminishing of the sums due to the state budget, the interest of more and more countries, including Romania, for the legalization and control over the transfer prices increases. Transfer pricing is an activity involving the execution of client related actions for a specific financial product through multiple intermediaries and / or tax jurisdictions. These transfer prices are used in different industries and, in the last period, have been used, in particular, by reinsurance companies as a result of difficult economic conditions and increasing competitiveness. Under these circumstances, insurers need to be aware that they will carry out tax inspections whose role is to verify using the market value principle, the compliance of their prices with the affiliated reinsurers in order to avoid misuse of those prices, by exaggerating costs and artificially reducing potential profits. This study emphasizes that reinsurance contracts made by affiliated companies are not the issue, but the way in which transactions are carried out that do not accurately reflect the risks transferred, their costs and the respect of the market value principle. If they are not carefully controlled, these reinsurance companies have every reason to use transfer pricing to move the profit between tax jurisdictions with differentiated rates of taxation, thus minimizing total corporate tax.

78 FR 3478 - International Mail Contracts

Science.gov (United States)

2013-01-16

... similar cost and market characteristics. Id. at 5. It notes that the pricing formula and classification...-filed Postal Service request concerning an additional Global Plus 2C contract. This document invites... that it is entering into an additional Global Plus 2C contract (Agreement).\\1\\ The Postal Service seeks...

Discussion: the supply price control

International Nuclear Information System (INIS)

Littlechild, S.

1993-01-01

Following the paper given by the Director General of the Office of Electricity Regulation (OFFER) at the Centre for the Study of Regulated Industries (CRI) seminar on Regulatory Policy and the Energy Sector held in November 1992, the issue of Supply Price Controls is debated. The role of OFFER as standing between Government and the Regional Electricity Companies is explored in a question and answer session, covering areas such as pool versus, contract prices, market forces, regulatory arrangements for the electricity supply, price discrimination and franchise markets. (UK)

46 CFR Sec. 2 - Description of NSA-WORKSMALREP Contract.

Science.gov (United States)

2010-10-01

... 46 Shipping 8 2010-10-01 2010-10-01 false Description of NSA-WORKSMALREP Contract. Sec. 2 Section... REPAIRS-NSA-WORKSMALREP Sec. 2 Description of NSA-WORKSMALREP Contract. This is an individual fixed price contract which may be awarded to any firm not holding an NSA-LUMPSUMREP Contract, as a result of formal...

Pricing Natural Gas. The Outlook for the European Market (Summary)

International Nuclear Information System (INIS)

2008-01-01

Long-term gas supply contracts contain price formulae, in which the gas price is usually linked to the price of another commodity, or to the spot price of gas in a particular market. In continental Europe the gas price in international long-term supply contracts is predominantly linked to oil products. At the same time, spot markets for gas in which gas prices are determined by supply and demand are developing in various EU markets. This paper addresses the question of to what extent the traditional form of oil-based price indexation is sustainable and/or will be sustained by the market players. It discusses the considerations the market players may have in favour of one or the other form of indexation, the external forces that may influence the choice of indexation in the short and longer terms and the consequences of change. It argues that pricing systems are a fundamental part of a market organisation, and that a shift to different pricing structures only happens if and when the main actors are convinced that they understand and accept the consequences of such change. It concludes that there is no strong evidence that the current hybrid situation, in which both forms of gas pricing co-exist, cannot continue. There are also no overriding reasons to intervene in the market practices of price formation. Both systems have their advantages and disadvantages under different market conditions, and to some extent complement each other in the current markets. Different types of risk and the appreciation thereof by the trading parties will determine particular choices of pricing rules and contracting conditions. More importantly, in today's market, in which new supplies are slow to come forward, the choice should be left to the market parties, particularly as sellers and buyers do not seem to be in strong disagreement

Evaluation of long-term natural gas marketing agreements: An application of commodity forward and option pricing theory

International Nuclear Information System (INIS)

Salahor, G.S.; Laughton, D.G.

1993-01-01

Methods that have been empirically validated in the analysis of short-term traded securities are adapted to evaluate long-term natural gas direct-sale contracts. A sample contract is examined from the perspective of the producer, and analyzed as a series of forward and option contracts. The assessment of contract value is based on the gas price forecast, the volatility in that forecast, and the valuation of risk caused by that volatility. The method presented allows the gas producer to quantify these elements, and to evaluate the variety of terms encountered in direct-sale natural gas agreements, including features such as load factors and penalty charges. The analysis uses as inputs a probabilistic price forecast and a determination of a price of risk for gas prices. Once the forecast volatility is derived from the probabilistic forecast, the forward contracts imbedded in the long-term gas contract can be valued with a risk-discounting model, and optional aspects can be evaluated using the Black-Scholes option pricing method. 10 refs., 3 figs., 2 tabs

Corporate boards and bank loan contracting

OpenAIRE

Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang

2012-01-01

We investigate the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and nonprice loan terms (e.g., interest rates, collateral, covenants, and performance-pricing provisions) are more favorable, and syndicated loans comprise more lenders. In addition, board size, audit committee structure, and other board characteristics influence bank loan prices. However, they do not consistently affect all nonprice loan terms except for a...

Service contract of Renault Kerax 440 truck with deductible and policy limit coverage modification

Science.gov (United States)

Bustami, Pasaribu, Udjianna. S.; Husniah, Hennie

2016-02-01

In this paper we discuss a service contracts with coverage modification that only offer preventive maintenance and corrective maintenance for Renault Kerax 440 Truck by service contract provider. Corrective maintenance costs is modified with deductible and policy limit during the period of the service contract. Demand for a service contract is only influenced by the price of the service contract, deductible, and policy limit offered by producer to consumer. The main problem in this thesis is determining the price of a service contract, deductible, and policy limit to get maximum profit for producer for each of service contract.

78 FR 3477 - International Mail Contracts

Science.gov (United States)

2013-01-16

... they share similar cost and market characteristics. Id. at 5. It notes that the pricing formula and...-filed Postal Service request concerning an additional Global Plus 2C contract. This document invites... announcing that it is entering into an additional Global Plus 2C contract (Agreement).\\1\\ The Postal Service...

Electricity market risk management using forward contracts with bilateral options

International Nuclear Information System (INIS)

Chung, T.S.; Yu, C.W.; Wong, K.P.; Zhang, S.H.

2003-01-01

Extreme short-term price volatility in competitive electricity markets creates the need for risk management arrangements. A new electricity forward contract with bilateral financial options is introduced, which allows both seller and buyer to take advantage of flexibility in generation and consumption to obtain monetary benefits while simultaneously removing the risk of market price fluctuations. The option theory is incorporated to formulate the contract price. The strike prices of options are derived from solving an equilibrium model in which both the buyer and the seller aim to maximise their own profit. Theoretical analysis shows that the proposed optional forward contract presents a more equitable and reasonable payoff structure that allows the buyer and seller to earn a larger overall expected benefit, and the contractual arrangement supports efficiency in economic dispatch of electricity production and consumption. The insights obtained from these results will be helpful to participants in the contractual decision-making process. (Author)

Optional forward contracts for electric power markets

International Nuclear Information System (INIS)

Gedra, T.W.

1994-01-01

This paper extends the idea of callable forward contracts, which are potentially useful as demand-side (interruptible-load) contracts, to their supply-side analogues. Together, these contracts allow market participants to take advantage of flexibility in generation or consumption to obtain a monetary benefit, while simultaneously removing the risk of market price fluctuations. This paper also considers the effects of strategic behavior on the part of market participants in their contract sales/purchase decisions

Strategies for risk management using the paper markets [to minimize oil price risks

International Nuclear Information System (INIS)

Annesley, M.

1993-01-01

The severe price movement experienced within energy markets during the last few years have awakened significant interest in hedging, and other uses of the futures, options, forward and derivative markets, to minimise price risk. There are two basic strands of structure of the markets now available for risk mangement. The first of these is the Exchange markets (IPE, NYMEX, and SIMEX) providing various futures and options alternatives; the second is the forward cargo contracts. The liquidity in these forward cargo markets, is variable but the contracts do provide some hedging and price risk management opportunities, which supplement and complement the Exchange markets, particularly for the professional risk managers and market makers. A range of forward markets is potentially available serving all regions. The more recent development of widely used derivative contracts, notably the swaps and price triggering in physical sale contracts, gives further alternatives from which interested companies may choose. The derivative market, although by definition off-exchange' may use either the Exchanges, forward markets or various oil publications for establishing their prices. Therefore, Exchange futures and options, forward markets and either standard or individually tailored derivatives all provide possible solutions to the risk management needs of coping with today's volatile prices. (author)

Enhancing medicine price transparency through price information mechanisms.

Science.gov (United States)

Hinsch, Michael; Kaddar, Miloud; Schmitt, Sarah

2014-05-08

Medicine price information mechanisms provide an essential tool to countries that seek a better understanding of product availability, market prices and price compositions of individual medicines. To be effective and contribute to cost savings, these mechanisms need to consider prices in their particular contexts when comparing between countries. This article discusses in what ways medicine price information mechanisms can contribute to increased price transparency and how this may affect access to medicines for developing countries. We used data collected during the course of a WHO project focusing on the development of a vaccine price and procurement information mechanism. The project collected information from six medicine price information mechanisms and interviewed data managers and technical experts on key aspects as well as observed market effects of these mechanisms.The reviewed mechanisms were broken down into categories including objective and target audience, as well as the sources, types and volumes of data included. Information provided by the mechanisms was reviewed according to data available on medicine prices, product characteristics, and procurement modalities. We found indications of positive effects on access to medicines resulting from the utilization of the reviewed mechanisms. These include the uptake of higher quality medicines, more favorable results from contract negotiations, changes in national pricing policies, and the decrease of prices in certain segments for countries participating in or deriving data from the various mechanisms. The reviewed mechanisms avoid the methodological challenges observed for medicine price comparisons that only use national price databases. They work with high quality data and display prices in the appropriate context of procurement modalities as well as the peculiarities of purchasing countries. Medicine price information mechanisms respond to the need for increased medicine price transparency and have the

1997 begins quietly in the spot market as prices continue to drop

International Nuclear Information System (INIS)

Anon.

1997-01-01

A summary of financial data for the uranium spot market in January 1997 is provided. Price ranges for the restricted and unrestricted markets, conversion, and separative work are listed, and total market volume and new contracts are noted. Transactions made are briefly described. Deals made and pending in the spot concentrates, medium and long-term, conversion, and markets are listed for U.S. and non-U.S. buyers

Renegotiating ethane contracts from producer/processor perspectives

International Nuclear Information System (INIS)

Hawkins, D. J.

1997-01-01

An overview of commercial practices relating to ethane sup ply and other collateral issues, including the variety of technologies used in the recovery of ethane and the manufacture of ethylene was provided. Ethane supply and demand balances, the Alberta ethane supply, the justifications for ethane recovery, the need for renegotiating ethane contracts in view of the changing Alberta market, the major price components , producers and processors' objectives in ethane sales, the nature of ethane contracts, and ethane pricing mechanisms were reviewed. The 'Alberta Advantage' based on gas price, large-scale ethane recovery, proximity to the largest market in the world, efficient transportation and fractionation facilities, further enhanced by deregulation and reduced regulatory barriers, was described. It was suggested that the enhanced competition and increase in market diversity demands a transparency in pricing that may well be realized as additional players enter the petrochemical business, and as competing transportation, processing and fractionation options become available to ethane suppliers and purchasers.1 tab

Natural gas contracts in an emerging competitive market

International Nuclear Information System (INIS)

Sutherland, R.J.

1992-01-01

Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs

Natural gas contracts in an emerging competitive market

Energy Technology Data Exchange (ETDEWEB)

Sutherland, R.J.

1992-11-01

Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs.

Natural gas contracts in an emerging competitive market

Energy Technology Data Exchange (ETDEWEB)

Sutherland, R.J.

1992-01-01

Natural gas is being viewed by many as the fuel of the 1990s and beyond because of its environmental qualities, relatively low cost and significant domestic resource base. However, in the Fall of 1991, a group of electric utility executives met with then Deputy Secretary of Energy Henson Moore and asserted that an inability to obtain long term gas contracts meant that supplies are unreliable and construction of gas-fueled generating stations is being discouraged. This study was requested by the Deputy Secretary to address the issues surrounding long-term gas contracts and supply reliability. The relationship between supply reliability and contracts is explained in terms of the number of buyers and sellers in a market. With the appropriate state regulatory policies, utilities can contract for gas and obtain reliable supplies at competitive market prices. Public utility commissioners are encouraged to permit utilities a free choice in signing gas contracts, but to allow only competitive market prices to be reflected in allowable fuel costs.

Future contracts in the nuclear fuel industry

International Nuclear Information System (INIS)

Fuller, D.M.

1995-01-01

In a modern futures market, standardized contracts for future delivery of a commodity are traded through an exchange that establishes contract terms and the rules of trading. The futures contract itself is simply an agreement between a buyer and a seller in which the seller is obligated to deliver and the buyer is obligated to accept a predetermined quantity of a specified commodity at a given location on a certain date in the future for a set price. Organized futures markets aid in price discovery; provide a risk management tool for those with commercial interests in a commodity; create speculative opportunities; and contribute to competitiveness, efficiency, and fairness in trading. There are, at present, no standardized futures contracts in the nuclear fuel industry, although the concept has been discovered for years. The idea has been raised again recently in relation to the disposition of Russian uranium. Some adaptation of traditional futures contracts, traded on an exchange composed of nuclear fuel industry participants, could provide many of the benefits found in other commodity futures markets

Investigating price clustering in the oil futures market

Energy Technology Data Exchange (ETDEWEB)

Narayan, Paresh Kumar [School of Accounting, Economics and Finance, Deakin University (Australia); Narayan, Seema [School of Economics, Finance and Marketing, Royal Melbourne Institute of Technology, Melbourne (Australia); Popp, Stephan [Department of Economics, University of Duisburg-Essen (Germany)

2011-01-15

Price clustering can be a source of market inefficiency. It follows that searching for price clustering in markets have gone beyond share prices into real estate, interest rate, and exchange rate markets. In this paper, we extend this line of research to oil futures markets. In particular, we consider five different forms of oil futures contracts and test for evidence of price clustering. Our results reveal strong presence of price clustering in the oil futures market. This finding implies that price clustering can potentially be a source of oil market inefficiency, which can influence trading strategies. (author)

Investigating price clustering in the oil futures market

International Nuclear Information System (INIS)

Narayan, Paresh Kumar; Narayan, Seema; Popp, Stephan

2011-01-01

Price clustering can be a source of market inefficiency. It follows that searching for price clustering in markets have gone beyond share prices into real estate, interest rate, and exchange rate markets. In this paper, we extend this line of research to oil futures markets. In particular, we consider five different forms of oil futures contracts and test for evidence of price clustering. Our results reveal strong presence of price clustering in the oil futures market. This finding implies that price clustering can potentially be a source of oil market inefficiency, which can influence trading strategies. (author)

Electricity Futures Prices : Time Varying Sensitivity to Fundamentals

NARCIS (Netherlands)

S-E. Fleten (Stein-Erik); R. Huisman (Ronald); M. Kilic (Mehtap); H.P.G. Pennings (Enrico); S. Westgaard (Sjur)

2014-01-01

textabstractThis paper provides insight in the time-varying relation between electricity futures prices and fundamentals in the form of prices of contracts for fossil fuels. As supply curves are not constant and different producers have different marginal costs of production, we argue that the

Constructing forward price curves in electricity markets

DEFF Research Database (Denmark)

Fleten, S.-E.; Lemming, Jørgen Kjærgaard

2003-01-01

We present and analyze a method for constructing approximated high-resolution forward price curves in electricity markets. Because a limited number of forward or futures contracts are traded in the market, only a limited picture of the theoretical continuous forward price curve is available...... to the analyst. Our method combines the information contained in observed bid and ask prices with information from the forecasts generated by bottom-up models. As an example, we use information concerning the shape of the seasonal variation from a bottom-up model to improve the forward price curve quoted...

Nonlinear Pricing with Random Participation

OpenAIRE

Jean-Charles Rochet; Lars A. Stole

2002-01-01

The canonical selection contracting programme takes the agent's participation decision as deterministic and finds the optimal contract, typically satisfying this constraint for the worst type. Upon weakening this assumption of known reservation values by introducing independent randomness into the agents' outside options, we find that some of the received wisdom from mechanism design and nonlinear pricing is not robust and the richer model which allows for stochastic participation affords a m...

Forward contract - minimize the exchange risk

OpenAIRE

Martin Maršík; František Vebr

1998-01-01

How can a Czech export (import) company hedge exchange risk? Some of the possibilities are these: 1/ use only CZK for foreign contracts; 2/ matching payments in the same or a parallel currency; 3/ use the products of the money markets; 4/ use the products of the forward market - FORWARD CONTRACT The forward market offers a forward contract to buy or sell a fixed amount of currency at a fixed price on a specific date in the future. The settlement of the contract is in more than two days. The e...

78 FR 7387 - Continuation of 2008 Farm Bill-Dairy Forward Pricing Program

Science.gov (United States)

2013-02-01

...] Continuation of 2008 Farm Bill--Dairy Forward Pricing Program AGENCY: Agricultural Marketing Service, USDA... the Dairy Forward Pricing Program contained in the Food, Conservation and Energy Act of 2008 (the 2008... associations of producers may enter into forward price contracts under the Dairy Forward Pricing Program...

Towards Certified Management of Financial Contracts

DEFF Research Database (Denmark)

Bahr, Patrick; Berthold, Jost; Elsman, Martin

2014-01-01

. The seminal work by Peyton-Jones and Eber on financial contracts shows how an algebraic approach to contract specification can be used for valuation of contracts (when combined with a model of the underlying observables) and for managing how contracts evolve under so-called fixings and decision......-taking, with the contracts eventually evaporating into the empty contract, for which no party have further obligations. The ideas have emerged into Eber's company LexiFi, which has become a leading software provider for a range of financial institutions, with all contract management operations centralised around a domain......Banks and financial institutions nowadays often use domain-specific languages (DSLs) for describing complex financial contracts, in particular, for specifying how asset transfers for a specific contract depend on underlying observables, such as interest rates, currency rates, and stock prices...

Expected commodity returns and pricing models

International Nuclear Information System (INIS)

Cortazar, Gonzalo; Kovacevic, Ivo; Schwartz, Eduardo S.

2015-01-01

Stochastic models of commodity prices have evolved considerably in terms of their structure and the number and interpretation of the state variables that model the underlying risk. Using multiple factors, different specifications and modern estimation techniques, these models have gained wide acceptance because of their success in accurately fitting the observed commodity futures' term structures and their dynamics. It is not well emphasized however that these models, in addition to providing the risk neutral distribution of future spot prices, also provide their true distribution. While the parameters of the risk neutral distribution are estimated more precisely and are usually statistically significant, some of the parameters of the true distribution are typically measured with large errors and are statistically insignificant. In this paper we argue that to increase the reliability of commodity pricing models, and therefore their use by practitioners, some of their parameters — in particular the risk premium parameters — should be obtained from other sources and we show that this can be done without losing any precision in the pricing of futures contracts. We show how the risk premium parameters can be obtained from estimations of expected futures returns and provide alternative procedures for estimating these expected futures returns. - Highlights: • Simple methodology to improve the performance of commodity pricing models • New information about commodity futures expected return is added to the estimation. • No significant effect in pricing futures contracts is observed. • More reliable commodity pricing model's expected returns are obtained. • Methodology is open to any expected futures return model preferred by practitioner

Chaos in oil prices? Evidence from futures markets

International Nuclear Information System (INIS)

Adrangi, B.; Chatrath, A.; Dhanda, K.K.; Raffiee, K.

2001-01-01

We test for the presence of low-dimensional chaotic structure in crude oil, heating oil, and unleaded gasoline futures prices from the early 1980s. Evidence on chaos will have important implications for regulators and short-term trading strategies. While we find strong evidence of non-linear dependencies, the evidence is not consistent with chaos. Our test results indicate that ARCH-type processes, with controls for seasonal variation in prices, generally explain the non-linearities in the data. We also demonstrate that employing seasonally adjusted price series contributes to obtaining robust results via the existing tests for chaotic structure. Maximum likelihood methodologies, that are robust to the non-linear dynamics, lend support for Samuelson's hypothesis on contract-maturity effects in futures price-changes. However, the tests for chaos are not found to be sensitive to the maturity effects in the futures contracts. The results are robust to controls for the oil shocks of 1986 and 1991

75 FR 23710 - Order Finding That the ICE PG&E Citygate Financial Basis Contract Traded on the...

Science.gov (United States)

2010-05-04

... ICE maintains exclusive rights over IPI's bidweek price indices. As a result, no other exchange can... this contract has the exclusive right to base its settlement on the IPI PG&E Citygate Index price... Contract Traded on the IntercontinentalExchange, Inc., Performs a Significant Price Discovery Function...

76 FR 37353 - Federal Acquisition Regulation; Information Collection; Certification of Independent Price...

Science.gov (United States)

2011-06-27

...; Information Collection; Certification of Independent Price Determination and Parent Company and Identifying... requirement concerning certification of independent price determination and parent company and identifying... laws, offerors on Government contracts must complete the certificate of independent price determination...

Spot volume nearly 5 million lbs; restricted price hits $11.00

International Nuclear Information System (INIS)

Anon.

1995-01-01

A summary of financial data for the uranium spot market in March 1995 is provided. Price ranges for the restricted and unrestricted markets, conversion, and separative work are listed, and total market volume and new contracts are noted. The 40 transactions made for the month are described separately for each market. Deals made in the spot concentrates, medium and long-term, conversion, and enrichment markets are further detailed for U.S. and non-U.S. buyers

Auction pricing of network access for North American railways

DEFF Research Database (Denmark)

Harrod, Steven

2013-01-01

The question of pricing train paths for "open access" railway networks in North America is discussed. An auction process is suggested as necessary to maintain transparency in the contracting process. Multiple random samples of auction pricing for a single track railway line demonstrate...... that the infrastructure entity will receive approximately 15.6% less than the true value of the contracted train paths. This loss of revenue threatens the objective of reducing government subsidy for the railway network. (C) 2012 Elsevier Ltd. All rights reserved....

Maintenance service contract model for heavy equipment in mining industry using principal agent theory

Science.gov (United States)

Pakpahan, Eka K. A.; Iskandar, Bermawi P.

2015-12-01

Mining industry is characterized by a high operational revenue, and hence high availability of heavy equipment used in mining industry is a critical factor to ensure the revenue target. To maintain high avaliability of the heavy equipment, the equipment's owner hires an agent to perform maintenance action. Contract is then used to control the relationship between the two parties involved. The traditional contracts such as fixed price, cost plus or penalty based contract studied is unable to push agent's performance to exceed target, and this in turn would lead to a sub-optimal result (revenue). This research deals with designing maintenance contract compensation schemes. The scheme should induce agent to select the highest possible maintenance effort level, thereby pushing agent's performance and achieve maximum utility for both parties involved. Principal agent theory is used as a modeling approach due to its ability to simultaneously modeled owner and agent decision making process. Compensation schemes considered in this research includes fixed price, cost sharing and revenue sharing. The optimal decision is obtained using a numerical method. The results show that if both parties are risk neutral, then there are infinite combination of fixed price, cost sharing and revenue sharing produced the same optimal solution. The combination of fixed price and cost sharing contract results in the optimal solution when the agent is risk averse, while the optimal combination of fixed price and revenue sharing contract is obtained when agent is risk averse. When both parties are risk averse, the optimal compensation scheme is a combination of fixed price, cost sharing and revenue sharing.

76 FR 16735 - Federal Acquisition Regulation; Information Collection; Certification of Independent Price...

Science.gov (United States)

2011-03-25

...; Information Collection; Certification of Independent Price Determination and Parent Company and Identifying... requirement concerning certification of independent price determination and parent company and identifying... violating such laws, offerors on Government contracts must complete the certificate of independent price...

``Power pricing`` in a competitive environment - from a cost-plus calculation to market oriented pricing; Strom-Pricing im Wettbewerb - Von der Kosten-Plus- zur marktfaehigen Preispolitik

Energy Technology Data Exchange (ETDEWEB)

Laker, M.; Herr, S. [Unternehmensberatung Simon Kucher und Partners, Bonn (Germany)]|[Strategy and Marketing Consultants GmbH, Cambridge, MA (United States)

1998-06-29

The days when electricity contracts were standardized with few modifications catered to customer needs are over. In liberalized electricity markets, pricing has become significantly more important. Survival in this competitive environment hinges not only on the absolute price level, but in particular on opportunities for price differentiation. The following article focuses on measures to create flexible pricing and contractual schemes. (orig.) [Deutsch] Die Zeiten einheitlicher Stromvertraege mit geringen Modifikationen sind vorbei. Durch die Liberalisierung des Strommarktes ist die Bedeutung des Preises drastisch gestiegen. Um im Wettbewerb ueberleben zu koennen, spielen nicht nur die absolute Preishoehe, sondern vor allem die Moeglichkeiten zur Preisdifferenzierung eine entscheidende Rolle. Erfolgversprechende Massnahmen zur flexiblen Preis- und Vertragsgestaltung stehen im Mittelpunkt dieses Aufsatzes. (orig.)

Price Discovery Function of Index Futures in China: Evidence from Daily Closing Prices

Institute of Scientific and Technical Information of China (English)

SHIQING; XIE; JIAJUN; HUANG

2013-01-01

Price discovery is one of the main functions of stock index futures.Using the daily closing prices of the CSI 300 index and its index futures from April 2010 to April 2012,this paper applies a vector error correction model(VECM)and an impulse response function to conduct an empirical analysis on the price discovery function of index futures in China.This paper has the following four findings:(1)a solid cointegration relationship between the CSI 300 index and its index futures exists in the long run;(2)when prices deviate from the longterm equilibrium,the stock index reverses weakly,while the reversal of index futures is much stronger;(3)the daily lead-lag relationship between the prices of the CSI 300 index and its index futures contracts is not significant in the short run;()shocks from the spot market have a lasting impact upon the futures market,but not vice versa,due to the limited short-term adjustment ability of the spot market.

Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance

National Research Council Canada - National Science Library

Arnold, Scot A; Harmon, Bruce R; Tyson, Karen W; Fasana, Kenton G; Wait, Christopher S

2009-01-01

.... The goal of profit policy is a contract price that reimburses the contractor for its costs, provides the necessary incentives to yield beneficial performance, and provides the contractor with sufficient risk reward...

Does the Lowest Bid Price Evaluation Criterion Make for a More Efficient Public Procurement Selection Criterion? (Case of the Czech Republic

Directory of Open Access Journals (Sweden)

Ochrana František

2015-06-01

Full Text Available Through the institute of public procurement a considerable volume of financial resources is allocated. It is therefore in the interest of contracting entities to seek ways of how to achieve an efficient allocation of resources. Some public contract-awarding entities, along with some public-administration authorities in the Czech Republic, believe that the use of a single evaluation criterion (the lowest bid price results in a more efficient tender for a public contract. It was found that contracting entities in the Czech Republic strongly prefer to use the lowest bid price criterion. Within the examined sample, 86.5 % of public procurements were evaluated this way. The analysis of the examined sample of public contracts proved that the choice of an evaluation criterion, even the preference of the lowest bid price criterion, does not have any obvious impact on the final cost of a public contract. The study concludes that it is inappropriate to prefer the criterion of the lowest bid price within the evaluation of public contracts that are characterised by their complexity (including public contracts for construction works and public service contracts. The findings of the Supreme Audit Office related to the inspection of public contracts indicate that when using the lowest bid price as an evaluation criterion, a public contract may indeed be tendered with the lowest bid price, but not necessarily the best offer in terms of supplied quality. It is therefore not appropriate to use the lowest bid price evaluation criterion to such an extent for the purpose of evaluating work and services. Any improvement to this situation requires a corresponding amendment to the Law on Public Contracts and mainly a radical change in the attitude of the Office for the Protection of Competition towards proposed changes, as indicated within the conclusions and recommendations proposed by this study.

48 CFR 514.270-7 - Guidelines for using the price list method.

Science.gov (United States)

2010-10-01

... on knowledge of the supplies or services and previous contract prices. (d) First time use for an item... price list method. 514.270-7 Section 514.270-7 Federal Acquisition Regulations System GENERAL SERVICES... for using the price list method. (a) General. The price list method helps avoid unbalanced bidding...

48 CFR 552.216-71 - Economic Price Adjustment-Special Order Program Contracts.

Science.gov (United States)

2010-10-01

... updated index, the Contractor shall have waived its right to an upward price adjustment for the balance of... Contractors shall have waived its right to an upward price adjustment for that option period. Alternatively... 48 Federal Acquisition Regulations System 4 2010-10-01 2010-10-01 false Economic Price Adjustment...

48 CFR 916.306 - Cost-plus-fixed-fee contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Cost-plus-fixed-fee... METHODS AND CONTRACT TYPES TYPES OF CONTRACTS Cost-Reimbursement Contracts 916.306 Cost-plus-fixed-fee... application of the statutory price or fee limitations. [49 FR 11955, Mar. 28, 1984, as amended at 59 FR 9105...

76 FR 54242 - Agency Information Collection Activities: Post-Award Contract Information

Science.gov (United States)

2011-08-31

... Governmentwide implementation of e-Government initiatives, it is commonplace within many of DHS's Components for... documentation, Government estimate of contract price, contract modifications, Small Business Administration... information requested is used by the Government's contracting officers and other acquisition personnel...

Constructing forward price curves in electricity markets

International Nuclear Information System (INIS)

Fleten, Stein-Erik; Lemming, Jacob

2003-01-01

We present and analyze a method for constructing approximated high-resolution forward price curves in electricity markets. Because a limited number of forward or futures contracts are traded in the market, only a limited picture of the theoretical continuous forward price curve is available to the analyst. Our method combines the information contained in observed bid and ask prices with information from the forecasts generated by bottom-up models. As an example, we use information concerning the shape of the seasonal variation from a bottom-up model to improve the forward price curve quoted on the Nordic power exchange

Defense Department Profit and Contract Finance Policies and Their Effects on Contract and Contractor Performance

National Research Council Canada - National Science Library

Arnold, Scot A; Harmon, Bruce R; Tyson, Karen W; Fasana, Kenton G; Wait, Christopher S

2008-01-01

.... The goal of profit policy is a contract price that reimburses the contractor for its costs, provides the necessary incentives to yield beneficial performance, and to provide the contractor with sufficient risk reward...

Deregulation, market structure and gas prices in the Canadian Natural Gas Industry

International Nuclear Information System (INIS)

Uhler, R.S.

1992-01-01

During the course of the development of the natural gas industry in Canada, gas purchase and sales markets have evolved from being relatively free of regulation to being highly regulated and back again. Though pipeline transport charges were regulated, the pipeline companies, or their subsidiaries, owned the gas that they transported and price and other provisions of purchase and sales contracts were freely negotiated with the producers at one end and distributing utilities or industrial users at the other end. The Western Accord of 1985 set the process of deregulation of the Canadian natural gas industry in motion. On November 1, 1986, natural gas prices in interprovincial trade were deregulated in that domestic natural gas prices were to be freely negotiated. Although not stated explicitly, government policy is to permit export prices to be freely negotiated so long as they do not fall below domestic prices. The deregulation process has dramatically changed the relationship between buyers and sellers. Of particular importance is that deregulation has permitted companies to negotiate gas purchase contracts directly with producers with the pipeline company acting solely as a gas transporter. The purpose of this paper is to examine the forces that have led to shorter term contracts and to examine the likely effect of these contract terms on reservoir development investment incentives. 5 refs., 3 figs

Residential energy contracts and the 28 day rule

International Nuclear Information System (INIS)

Littlechild, Stephen

2006-01-01

What measures are needed to protect customers when a utility market is first opened to competition? In the UK, residential (domestic) customers must be able to terminate energy contracts at 28 days' notice. This rule was introduced as a transitional protection for customers and for competition. However, the regulatory justification for the rule seems to have evolved over time. Removing the rule could have a number of advantages, including the development of fixed-price fixed-term contracts. The advantages of retaining the rule are questionable. In other retail sectors there is no regulatory concern or requirement of this kind. UK electricity suppliers have begun to offer capped prices for specified periods of time, suggesting that there is a growing customer demand for this. Fixed-price fixed-term contracts are a common form of competition in Scandinavia. The 28 day rule no longer seems necessary to protect customers and is more likely to distort than to protect competition. In retrospect, it would have been preferable not to introduce the rule in the first place. (author)

Pricing Unmetered Irrigation Water under Asymmetric Information and Full Cost Recovery

Directory of Open Access Journals (Sweden)

Alban Lika

2016-12-01

Full Text Available The objective of this study is to define an efficient pricing scheme for irrigation water in conditions of unmetered water use. The study is based on a principal-agent model and identifies a menu of contracts, defined as a set of payments and share of irrigated area, able to provide incentives for an efficient use of the resource by maximizing social welfare. The model is applied in the case study of the Çukas region (Albania where irrigation water is not metered. The results demonstrate that using a menu of contracts makes it possible to define a second best solution that may improve the overall social welfare derived from irrigation water use compared with the existing pricing structure, though, in the specific case study, the improvement is small. Furthermore, the results also suggest that irrigation water pricing policy needs to take into account different farm types, and that appropriate contract-type pricing schemes have a potential role in providing incentives to farmers to make irrigation choices to the social optimum.

The Effectiveness of Corporate Boards: Evidence from Bank Loan Contracting

OpenAIRE

Francis, Bill; Hasan, Iftekhar; Koetter, Michael; Wu, Qiang

2009-01-01

This paper investigates the role of corporate boards in bank loan contracting. We find that when corporate boards are more independent, both price and non-price loan terms (e.g., interest rates, collateral, covenants and performance pricing) are more favorable and syndicated loans comprise more lenders. In addition, board size, board diversity, audit committee structure and other director characteristics also influence bank loan price. However they do not consistently affect all non-price loa...

Third party bargaining and contract terms: a link over time?

Science.gov (United States)

Brooks, John M; Doucette, William R; Sorofman, Bernard A

2002-01-01

To evaluate whether prior pharmacy bargaining process strategies and pharmacy dependence on third parties affect the bargaining power of pharmacies in price negotiations with third parties. One-time survey. Random sample of 900 independent and small chain pharmacies in nine states: Colorado, Connecticut, Georgia, Kentucky, Minnesota, Oklahoma, Oregon, Pennsylvania, and Wisconsin. Two hundred sixteen of the returned surveys contained sufficient responses for this analysis. Survey data on pharmacy bargaining power and prior pharmacy bargaining strategies, pharmacy dependence, and market characteristics were analyzed using multiple regression in a previously developed and modified provider/third party bargaining model. Pharmacy bargaining power. Pharmacy bargaining power varied across our sample. Pharmacy bargaining power was positively related to whether a pharmacy previously bargained with the third parties, negatively related to prior requests for contract changes, and negatively related to the pharmacy's dependence on third parties in total. Pharmacy bargaining power is related to the bargaining strategies employed by pharmacies during the previous year and the dependence of pharmacies on third party payers in total. With the prevalence of "take-it-or-leave-it" contracts from third parties, prior pharmacy bargaining behavior may affect the initial terms of the contracts that pharmacies are offered.

48 CFR 15.403-4 - Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b).

Science.gov (United States)

2010-10-01

... or pricing data (10 U.S.C. 2306a and 41 U.S.C. 254b). 15.403-4 Section 15.403-4 Federal Acquisition Regulations System FEDERAL ACQUISITION REGULATION CONTRACTING METHODS AND CONTRACT TYPES CONTRACTING BY NEGOTIATION Contract Pricing 15.403-4 Requiring certified cost or pricing data (10 U.S.C. 2306a and 41 U.S.C...

Innovation and the price of wind energy in the US

International Nuclear Information System (INIS)

Berry, David

2009-01-01

In the last ten years, the wind energy industry has experienced many innovations resulting in wider deployment of wind energy, larger wind energy projects, larger wind turbines, and greater capacity factors. Using regression analysis, this paper examines the effects of technological improvements and other factors on the price of wind energy charged under long-term contracts in the United States. For wind energy projects completed during the period 1999-2006, higher capacity factors and larger wind farms contributed to reductions in wind energy contract prices paid by regulated investor owned utilities in 2007. However, this effect was offset by rising construction costs. Turbine size (in MW) shows no clear relationship to contract prices, possibly because there may be opposing factors tending to decrease costs as turbine size increases and tending to increase costs as turbine size increases. Wind energy is generally a low-cost resource that is competitive with natural gas-fired power generation.

48 CFR 52.249-1 - Termination for Convenience of the Government (Fixed-Price) (Short Form).

Science.gov (United States)

2010-10-01

... Convenience of the Government (Fixed-Price) (Short Form). 52.249-1 Section 52.249-1 Federal Acquisition... CONTRACT CLAUSES Text of Provisions and Clauses 52.249-1 Termination for Convenience of the Government... Convenience of the Government (Fixed-Price) (Short Form) (APR 1984) The Contracting Officer, by written notice...

Pacta sunt servanda versus the social role of contracts: the case of Brazilian agriculture contracts

Directory of Open Access Journals (Sweden)

Christiane Leles Rezende

2012-06-01

Full Text Available This study explores the instability created by contradictory court decisions related with contract breaches. Forward marketing contracts represent an important source of resources to finance Brazilian agriculture, however a large number of contract breaches were observed during a period of marked increase in soy prices. The study analyzed 161 judicial appeal decisions and a survey was carried with 70 farmers. The results show the difference of judges' interpretation and the existence of second order effects. The effects of court decisions were more requirements of guarantees and the reduction in the number of contracts. Those soybean farmers who did not breach their contracts have also been negatively affected by the strategic reactions of trading and processing companies. The concept of "social function of the contract" introduced in Brazilian civil code led to a higher degree of instability in contracts, raising transaction costs and motivating private economic sanctions.

Dividend Per Share, Retained Earnings, Book Value And Total Debt On Stock Price: Approximation Valuation Model Dividend Per Share, Retained Earnings, Book Value, dan Total Debt terhadap Harga Saham: Pendekatan Valuation Model.

OpenAIRE

khikmah, Khoirul

2011-01-01

This study examines to dividend per share, retained earnings, book valueand total debt on stock price: approximation valuation model. Data in this studyare manufacture firms listed on Indonesia Stock Exchange in 2005 – 2008. Linearregression analysis used to analysis this data. Result of regression analysis findsthat dividend per share, retained earnings, book value and total debt on stock pricehave significant effect to stock price. Dividend per share and book value havesignificant effect in...

Risk management and oil trading contracts

International Nuclear Information System (INIS)

Sas, B.

1992-01-01

The oil market provides an excellent case study for an analysis of the commodity trading risks and the development of contractual instruments and market structures to meet these risks. The paper identifies the main risks, namely performance, credit/payment, price, regulatory, fiscal, and ''trading'' risk. A conceptual framework provides the basis to trace the evolution of the risk management instruments from relational (e.g. long-term), through ''transactional'' (e.g. spot and forwards) to ''institutional'' (e.g. futures and options) and finally ''pricing'' (e.g. swaps and trigger pricing) contracts. (author)

Oil markets and prices: the Brent market and the formation of world oil prices

International Nuclear Information System (INIS)

Horsnell, Paul; Mabro, Robert.

1993-01-01

The purpose of this book is to enhance our understanding of the complex working of the world petroleum market and of the formation of oil prices in international trade. It devotes particular attention to the Brent market which involves spot, physical forward and futures trading of a blend of North Sea crudes known as Brent which has become one of the most important markers for world oil prices. Because the Brent market is central the research presented here examines its relationship to the constellation of other oil markets: those which deal on a spot basis with the main export crude of Africa, the Gulf, the Far East and the North Sea, the market for Dubai, another marker crude, and that for West Texas Intermediate (WTI). Finally an analysis of pricing mechanisms used by OPEC and many non-OPEC exporting countries for their oil sales under term contracts and which use Brent prices as one of their references complete this study on oil markets and prices. (author)

International gas pricing in Europe and Asia: A crisis of fundamentals

International Nuclear Information System (INIS)

Stern, Jonathan

2014-01-01

In Continental Europe and LNG importing Asia, international gas prices reflect the market fundamentals of the 1970s–1990s when gas was replacing oil products and crude oil in energy balances. By the end of the 2000s, fundamentals in both these regions had changed significantly, but gas price formation mechanisms had not. This created major problems for buyers locked into long term contracts indexed to crude oil and oil product prices, which had risen to levels far above gas market fundamentals. By 2013, the transition to hub-based pricing was well advanced in Europe and dominant in the large markets in the north west of the Continent. In Asia the “crisis of fundamentals” was only just starting to be addressed with a transition to market pricing an urgent imperative, but still a distant prospect. - Highlights: • International gas prices in Europe and LNG importing Asia no longer reflect market fundamentals. • This became highly problematic in Europe post-2008 and in Japan post-Fukushima. • The result has been a significant switch to hub pricing in Europe. • In Asia, no substantial action has been taken beyond some new contracts based on Henry Hub prices

46 CFR Sec. 5 - Procedure for negotiated price awards.

Science.gov (United States)

2010-10-01

... shall be furnished with the information provided for in Article 1(a) of the NSA-LUMPSUMREP Contract. (b... Article 27 of the NSA-LUMPSUMREP Contract. ... 46 Shipping 8 2010-10-01 2010-10-01 false Procedure for negotiated price awards. Sec. 5 Section 5...

The close of the year brings a hint that prices may be coming down

International Nuclear Information System (INIS)

Anon.

1997-01-01

A summary of financial data for the uranium spot market in December 1996 is provided. Price ranges for the restricted and unrestricted markets, conversion, and separative work are listed, and total market volume and new contracts are noted. Transactions made are briefly described. Deals made and pending in the spot concentrates, medium and long-term, conversion, and markets are listed for U.S. and non-U.S. buyers

The contract of reactor design in Yonggwang - 3. 4 nuclear power plant

International Nuclear Information System (INIS)

1987-01-01

This contract document consist of five chapters which have contract clauses. It includes definition of the terms, insurance, the cancellation of contracts and management of the business in the first chapter. The second chapter deals with provision, including the scope of the supply and schedule, test, guarantee, the condition of delivery and transfer of ownership and rejection and exchange. The third chapter is about an agreement on prices, the terms of prices and a tax. The fourth chapter describes provision of services. The last is about the introduction of technology.

Estimating deficit probabilities with price-responsive demand in contract-based electricity markets

International Nuclear Information System (INIS)

Galetovic, Alexander; Munoz, Cristian M.

2009-01-01

Studies that estimate deficit probabilities in hydrothermal systems have generally ignored the response of demand to changing prices, in the belief that such response is largely irrelevant. We show that ignoring the response of demand to prices can lead to substantial over or under estimation of the probability of an energy deficit. To make our point we present an estimation of deficit probabilities in Chile's Central Interconnected System between 2006 and 2010. This period is characterized by tight supply, fast consumption growth and rising electricity prices. When the response of demand to rising prices is acknowledged, forecasted deficit probabilities and marginal costs are shown to be substantially lower

27 CFR 53.174 - Determination of price readjustments.

Science.gov (United States)

2010-04-01

... or credited to the vendee's account, or (ii) If the article is returned under an express or implied... certain installment sales contracts, and all or a part of the purchase price is repaid to the vendee or... retained by the manufacturer pursuant to contract as reimbursement of expense incurred in connection with...

Accounting for fuel price risk when comparing renewable togas-fired generation: the role of forward natural gas prices

Energy Technology Data Exchange (ETDEWEB)

Bolinger, Mark; Wiser, Ryan; Golove, William

2004-07-17

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then--contrary to common practice--any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000-2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation.

Effectively utilizing NYMEX contracts for natural gas electricity futures

International Nuclear Information System (INIS)

Burke, L.M.

1996-01-01

NYMEX (New York Mercantile Exchange) is one of the United States' largest commodity exchanges. The primary role of commodity exchanges were summarized as well as the characteristics of an effective exchange. The concept of commoditization, price risk and price volatility were explained. The evolution of world and domestic regulated energy markets, the characteristics of the futures market, NYMEX electricity futures contract specifications, natural gas and crude futures contract development, and the nature of hedging were reviewed. Differences of risk management practices in cash markets and futures markets were illustrated. tabs., figs

75 FR 2463 - Continuing Contract for Civil Works Project Managed by the United States Army Corps of Engineers...

Science.gov (United States)

2010-01-15

... be considered a breach of contract and shall not entitle the Contractor to a price adjustment under... constitute a breach of this contract and shall not entitle the Contractor to any price adjustment under the... Continuing Contract for Civil Works Project Managed by the United States Army Corps of Engineers Clauses...

48 CFR 5252.215-9000 - Submission of cost or pricing data.

Science.gov (United States)

2010-10-01

... pricing data. 5252.215-9000 Section 5252.215-9000 Federal Acquisition Regulations System DEPARTMENT OF THE... Clauses 5252.215-9000 Submission of cost or pricing data. As prescribed at 5215.407, insert the following provision: Submission of Cost or Pricing Data (NOV 1987) (a) It is expected that this contract will be...

Considering system non-linearity in transmission pricing

International Nuclear Information System (INIS)

Oloomi-Buygi, M.; Salehizadeh, M. Reza

2008-01-01

In this paper a new approach for transmission pricing is presented. The contribution of a contract on power flow of a transmission line is used as extent-of-use criterion for transmission pricing. In order to determine the contribution of each contract on power flow of each transmission line, first the contribution of each contract on each voltage angle is determined, which is called voltage angle decomposition. To this end, DC power flow is used to compute a primary solution for voltage angle decomposition. To consider the impacts of system non-linearity on voltage angle decomposition, a method is presented to determine the share of different terms of sine argument in sine value. Then the primary solution is corrected in different iterations of decoupled Newton-Raphson power flow using the presented sharing method. The presented approach is applied to a 4-bus test system and IEEE 30-bus test system and the results are analyzed. (author)

The NYMEX electricity futures contract

International Nuclear Information System (INIS)

Palmer-Huggins, D.

1998-01-01

Members of the New York Mercantile Exchange (NYMEX) include bankers, industry (such as refiners, producers, and electricity marketers) brokerage houses, and individuals. NYMEX is the largest physical commodity futures exchange in the world. The primary economic role of the commodity exchange industry was discussed, with special emphasis on open interest, volume, and liquidity. Hedge dynamics were also reviewed. A hedge was described as a financial instrument used to lock in prices, costs, and profit margins. Futures contracts in general, and electricity futures contracts in particular were defined ('a firm commitment to deliver or to receive a specified quantity or grade of commodity at a specific location within a designated month'). Results expected from hedging, - cost control, predictable margins, securing a certain market share, price stabilization - , the nature of options trading, and its benefits were also reviewed. 1 tab., 4 figs

A Unified Pricing of Variable Annuity Guarantees under the Optimal Stochastic Control Framework

Directory of Open Access Journals (Sweden)

Pavel V. Shevchenko

2016-07-01

Full Text Available In this paper, we review pricing of the variable annuity living and death guarantees offered to retail investors in many countries. Investors purchase these products to take advantage of market growth and protect savings. We present pricing of these products via an optimal stochastic control framework and review the existing numerical methods. We also discuss pricing under the complete/incomplete financial market models, stochastic mortality and optimal/sub-optimal policyholder behavior, and in the presence of taxes. For numerical valuation of these contracts in the case of simple risky asset process, we develop a direct integration method based on the Gauss-Hermite quadratures with a one-dimensional cubic spline for calculation of the expected contract value, and a bi-cubic spline interpolation for applying the jump conditions across the contract cashflow event times. This method is easier to implement and faster when compared to the partial differential equation methods if the transition density (or its moments of the risky asset underlying the contract is known in closed form between the event times. We present accurate numerical results for pricing of a Guaranteed Minimum Accumulation Benefit (GMAB guarantee available on the market that can serve as a numerical benchmark for practitioners and researchers developing pricing of variable annuity guarantees to assess the accuracy of their numerical implementation.

Cost and price auditing: effectiveness in the procurement of defense services in Spain

Directory of Open Access Journals (Sweden)

José Aguado Romero

Full Text Available Abstract Contract auditing, or cost and price auditing, has been applied in Spain as a means of determining prices in non-competitive defense contracts since 1989. Factors such as Spain's participation in international defense organizations, the characteristics of the defense market and the contractual legal framework for the procurement of defense goods and services help underscore the need for the Spanish Ministry of Defense to implement cost and price auditing. With the evolution of cost and price auditing in Spain in mind, this paper analyses the entire process, describes the audit procedures that are most commonly used today and assesses the main results achieved, in terms of financial savings. The results obtained show that cost and price auditing does indeed contribute to a more efficient use of public resources.

Short run pricing in competitive electricity markets

International Nuclear Information System (INIS)

Ring, B. J.; Read, E. G.

1996-01-01

In response to the need for more responsive, competitive and decentralized pricing strategies forced upon the industry by deregulation, this study reviewed the type of electricity pricing required to coordinate a competitive wholesale electricity market over time periods typically of the order of one hour. It was found that nodal spot pricing can provide a straight-forward mechanism for providing the correct signals to market participants, while reflecting the costs and complexities of transmission network operation. Provided that all binding constraints are represented in the pricing model, and assuming that they are used in conjunction with long term contracts and capacity rights, such pricing can potentially deliver most of the benefits promised by perfect coordination, while allowing competition to flourish. 4 refs

41 CFR 102-85.40 - What are the major components of the pricing policy?

Science.gov (United States)

2010-07-01

... components of the pricing policy? 102-85.40 Section 102-85.40 Public Contracts and Property Management...-PRICING POLICY FOR OCCUPANCY IN GSA SPACE Pricing Policy-General § 102-85.40 What are the major components of the pricing policy? The major components of the pricing policy are: (a) An OA between a customer...

Legal issues relating to the Ontario FIT contract - An update

International Nuclear Information System (INIS)

Weizman, Michael

2011-01-01

The paper discusses the legal issues related to the Ontario FIT contract, which includes the FIT waiver agreement, WTO challenge, FIT extension, political risk assessment and issues related to unforeseen events beyond human control (force majeure). The risk of termination of the FIT waiver is omitted for convenience by OPA but timing implications relating to the FIT waiver are included. The binding agreement for supply of generating equipment is also presented and the term sheet for turbine equipment and bill of purchase being understood as binding agreements is questioned. Political risks relate to existing contracts, lawsuit risks and changes to the REA process. Change in government and the implications of minority government can be added to the political risks. A successful WTO challenge has been assumed and the possible implications are discussed. Some of them include risk to FIT contracts already issued; changes in DC requirements and in FIT contract pricing and re-pricing of construction and turbine equipment supply contracts if DC requirements are relaxed.

The relation of monthly spot to futures prices for natural gas

International Nuclear Information System (INIS)

Herbert, J.H.

1993-01-01

The relationship between the spot price for natural gas for a delivery month and the futures contract price for the same delivery month is examined. The estimated regression equation provides a good summary of the relationship between spot and futures prices for the time period and can also be used to obtain accurate forecasts of spot prices. It appears that the natural gas futures market is inefficient. (author)

Operational Contract Support: Economic Impact Evaluation and Measures of Effectiveness

Science.gov (United States)

2017-12-01

NAVAL POSTGRADUATE SCHOOL MONTEREY, CALIFORNIA MBA PROFESSIONAL REPORT OPERATIONAL CONTRACT SUPPORT: ECONOMIC IMPACT EVALUATION AND MEASURES...DATES COVERED MBA professional report 4. TITLE AND SUBTITLE OPERATIONAL CONTRACT SUPPORT: ECONOMIC IMPACT EVALUATION AND MEASURES OF EFFECTIVENESS 5...evaluation, expeditionary economics , operational contract support, measure of effectiveness 15. NUMBER OF PAGES 89 16. PRICE CODE 17. SECURITY

Price signals and end consumer flexibility in shortage situations

International Nuclear Information System (INIS)

Hunnes, Arngrim; Grande, Ove S.

2002-08-01

This report is written as a part of the project ''Consumer flexibility and efficient use of ICT''. The project aim is 1) to provide a decision basis and suggest external conditions for a priority guided development of an infrastructure based on future ICT solutions and 2) develop, test and evaluate various measures which stimulate flexibility in consumption with consideration to power price, network rent and new market solutions. The central question in the report is how to stimulate the end consumer to be flexible in the consumption of electric power. The use of power price and system rent is desired tools for communicating the right price signals to the end consumers and thereby give the end users an incentive. The focus is primarily on the short term flexibility. The first chapter in the report gives an introduction to the price signals and the two way communication. There is a clear distinction between price signals from power suppliers and price signals from network companies. The two following chapters contain a more thorough discussion. As to the price signals from the power suppliers it is pointed out that most of the existing power contracts have a design so that they in the short term do not give the right price signals to the end users. It is proposed that two new contract types are tested: 1) Spot price and time settling. 2) Contract for reduced power price in a certain period provided the consumer is willing to reduce the load when 1) the spot price exceeds a level given by the end user, 2) the present load exceeds the subscribed level. In the chapter about the price signals from network companies there is first a brief introduction to the natural monopoly and the demands of the authorities to network tariffs. There is also a survey of the size of the system tariffs in the various counties. The central section of the chapter contains suggestions for designing network tariffs. Based on the deductions it is proposed that the project will test the

Pricing Scheme of Ocean Carrier for Inbound Container Storage for Assistance of Container Supply Chain Finance

Directory of Open Access Journals (Sweden)

Mingzhu Yu

2014-01-01

Full Text Available The aim of this paper is to investigate the pricing scheme of ocean carrier for inbound container storage so as to assist container supply chain finance. In this paper, how an ocean carrier should set price of inbound container storage to the customer while facing the contract from the container terminal operator is first analyzed. Then, two different contract systems, the free-time contract system which is widely used in practice and the free-space contract system which is newly developed recently, are considered. In the two different contract systems, inbound container storage pricing models are constructed, and accordingly optimal solution approaches for the ocean carrier are provided. For comparison purpose, some numerical experiments for the two different contract systems are conducted to investigate the effects of the container terminal operator’s decision on the system outcomes. Numerical experiments show that (1 the carrier is more flexible in the free-space contract system and can receive more profit by using the free-storage-space as a pooling storage system and (2 the free-space contract system benefits both the carrier in profit and the busy terminal in traffic control.

Accounting for fuel price risk when comparing renewable to gas-fired generation: the role of forward natural gas prices

International Nuclear Information System (INIS)

Bolinger, Mark; Wiser, Ryan; Golove, William

2006-01-01

Unlike natural gas-fired generation, renewable generation (e.g., from wind, solar, and geothermal power) is largely immune to fuel price risk. If ratepayers are rational and value long-term price stability, then-contrary to common practice-any comparison of the levelized cost of renewable to gas-fired generation should be based on a hedged gas price input, rather than an uncertain gas price forecast. This paper compares natural gas prices that can be locked in through futures, swaps, and physical supply contracts to contemporaneous long-term forecasts of spot gas prices. We find that from 2000 to 2003, forward gas prices for terms of 2-10 years have been considerably higher than most contemporaneous long-term gas price forecasts. This difference is striking, and implies that comparisons between renewable and gas-fired generation based on these forecasts over this period have arguably yielded results that are biased in favor of gas-fired generation

The Economics of Advance Pricing Agreements

OpenAIRE

Johannes Becker; Ronald B. Davies; Gitte Jakobs

2014-01-01

Advance pricing agreements (APAs) determine transfer prices for intra-firm transactions in advance. This paper interprets these contracts as a means to overcome a hold-up problem that occurs because governments cannot commit to non-excessive future tax rates. In addition, with private information, just as in practice, our APAs will be complex and require lengthy negotiations. Never- theless, implemented APAs lead to a Pareto improvement even when all agents are risk neutral. However, not all ...

77 FR 26175 - Section 42 Qualified Contract Provisions

Science.gov (United States)

2012-05-03

... indebtedness under general principles of Federal income tax law, and (3) upon the sale of the building, are... building for sale to the general public at the determined qualified contract price upon receipt of a... because of variations under State laws concerning the terms of a bona fide contract and methods for...

Long term contracts in portfolios of gas supply

International Nuclear Information System (INIS)

Burns, D.

1992-01-01

This paper promotes the idea of long-term contracting for natural gas local distributors and utilities. It presents a brief history of how the spot-market developed and the effects spot-marketing can have in times of supply shortages. This has also resulted in a drastic decrease in exploration and development in the gas industry as gas supplies have exceeding demand, driving the prices down. The paper proposes several methods to restabilize the long-term contracting of gas by considering volume and pricing flexibility. Some brief discussions of industry-wide statistics are presented to show reserve replacement costs which would be needed to preserve the industry in a profit-making situation

Overcoming the drawbacks of a Revenue Sharing Contract in a marketing channel through a coop program

NARCIS (Netherlands)

De Giovanni, P.; Roselli, M.

2012-01-01

In a marketing channel governed by goodwill dynamics, players adjust their pricing and advertising strategies when shifting from a wholesale price contract (WPC) to a revenue sharing contract (RSC). We demonstrate that this shift is not payoff-Pareto-improving when the retailer, who is the player

Price Regulations in a Multi-unit Uniform Price Auction

DEFF Research Database (Denmark)

Boom, Anette

not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small......Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does...

Price Regulations in a Multi-unit Uniform Price Auction

DEFF Research Database (Denmark)

Boom, Anette

Inspired by recent regulations in the New York ICAP market we examine the effect of different price regulations on a multi-unit uniform price auction. We investigate a bid cap and a bid foor. Given suffciently high total capacities general bid caps always ensure that the market price does...... not exceed the price cap whereas a selective bid cap for only the larger firms, does not guarantee this outcome. A sufficiently high bid floor always destroys pure strategy equilibria with equilibrium prices above the marginal costs, no matter whether the floor applies to all or only to relatively small...

Coal contract cost reduction through resale of coal

International Nuclear Information System (INIS)

Simon, R.

1990-01-01

The weak coal market of the 1980's has enabled utilities and other users of coal to enjoy stable or falling prices for coal supplies. Falling prices for coal stimulated the renegotiation of numerous coal contracts in recent years, as buyers look to take advantage of lower fuel prices available in the marketplace. This paper examines the use of coal resale transactions as a means of reducing fuel costs, and analyzes the benefits and risks associated with such transactions

48 CFR 215.404-74 - Fee requirements for cost-plus-award-fee contracts.

Science.gov (United States)

2010-10-01

... 48 Federal Acquisition Regulations System 3 2010-10-01 2010-10-01 false Fee requirements for cost... NEGOTIATION Contract Pricing 215.404-74 Fee requirements for cost-plus-award-fee contracts. In developing a fee objective for cost-plus-award-fee contracts, the contracting officer shall— (a) Follow the...

Petroleum price

International Nuclear Information System (INIS)

Chevallier, B.

2009-01-01

The 'AFTP' conference on 'petroleum prices' organized by Total last March, tries to explain the different aspects of the crisis we undergo for July 2007 and its consequential effects on the petroleum markets (supply, demand evolvements, impacts on reserves, prices, refining...). (O.M.)

Existence of a current price as a precondition for abstract method for calculating damages in international and Serbian sales law

Directory of Open Access Journals (Sweden)

Fišer-Šobot Sandra

2014-01-01

Full Text Available If the contract is avoided and there is a current price for the goods, the party claiming damages may recover the difference between the price fixed by the contract and the current price at specific time and at specific place. Abstract calculation of loss is possible only when the contract goods have current price. Current price is the price generally charged for such goods sold under comparable circumstances in the trade concerned. According to the CISG and Serbian Law of Obligations, for the determination of the current price is relevant time of avoidance. This general rule is not applicable in international sales law when the party claiming damages has avoided the contract after taking over the goods. In that case, the current price at the time of taking over shall be applicable instead of the current price at the time of avoidance. Current price rule contained in the Art. 76(2 of the CISG presupposes that the current price is the price prevailing at the place where the delivery of the goods should have been made, or if there is no current price at the place, the price at such other place as serves as a reasonable substitute, making due allowance for differences in the cost of transporting the goods. Pursuant to Art. 524(2 Of Serbian Law of Obligations, however, relevant is the price in the market of the place of effecting the transaction. Formulation place of effecting the transaction is unclear and vague and can create different problems. Therefore, this rule should be amended and the relevant place should be the place of delivery.

Statistical Studies of Non-price Competition in the Structure of Public Procurement in the Russian Federation

OpenAIRE

Svetlana Aleksandrovna Sergeeva; Alexander Alexandrovich Arionchik

2016-01-01

The principle of securing competition is one of the basic principles of the contract system in public procurement in the Russian Federation. The law on the contract system in procurement stipulates that the contract system in procurement is aimed at creating equal conditions to ensure competition between the parties to procurement. An important aspect is that the competition for procurement should be based on compliance with the principle of fair price and non-price competition. The purpose o...

Contract Design: Financial Options and Risk.

Science.gov (United States)

Mühlbacher, Axel C; Amelung, Volker E; Juhnke, Christin

2018-01-12

Integrated care systems as well as accountable care organisations (ACOs) in the US and similar concepts in other countries are advocated as an effective method of improving the performance of healthcare systems. These systems outline a payment and care delivery model that intends to tie provider reimbursements to predefined quality metrics. By this the total costs of care shall be reduced. When designing healthcare options contractors are faced with a variety of financial options. The costs of market utilisation are highly relevant for the conception of healthcare contracts; furthermore contract-specific investments are an obstacle to the efficient operation of ACOs. A comprehensive literature review on methods of designing contracts in Integrated Care was conducted. This article is the second in a row of three that are all published in this issue and contribute to a specific issue in designing healthcare contracts. The first dealt with the organisation of contracts and information asymmetries, while part 3 concludes with the question of risk management and evaluation. The specific research question of this second article focusses on the financial options and reimbursement schemes that are available to define healthcare contracts. A healthcare contract is a relational contract, which determines the level of reimbursement, the scope of services and the quality between service providers and payers, taking account of the risks relating to population and performance. A relational contract is an agreement based upon assumption of a longer timeframe. A major obstacle to the practical implementation of healthcare contracts is the prognosis of the inflows and outflows due to the actuarial risks of the insured population. Financing conditions and reimbursement arrangements that are based on a prospectively determined fixed price, have a significant drawback: it is very difficult to take the differences in health status and the utilisation of distinct insured clientele

77 FR 194 - Federal Acquisition Regulation; Time-and-Materials and Labor-Hour Contracts for Commercial Items

Science.gov (United States)

2012-01-03

..., or a cost-plus term. Otherwise, the respondent thinks contracting officers are likely to read the... target cost), or both. Unless otherwise specified in the contract, the ceiling price or target price is... not possible to accurately estimate the extent or duration of the work or anticipated costs with any...

Bilateral Coordination Strategy of Supply Chain with Bidirectional Option Contracts under Inflation

Directory of Open Access Journals (Sweden)

Nana Wan

2015-01-01

Full Text Available As far as the price increase and the demand contraction caused by inflation are concerned, we establish a Stackelberg game model that incorporates bidirectional option contracts and the effect of inflation and derive the optimal ordering and production policies on a one-period two-stage supply chain composed of one supplier and one retailer. Through using the model of wholesale price contracts as the benchmark, we find that the introduction of bidirectional option contracts can benefit both the supplier and the retailer under inflation scenarios. Based on the conclusions drawn above, we design the bilateral coordination mechanism from the different perspective of two members involved and discuss how bidirectional option contracts should be set to achieve channel coordination under inflation scenarios. Through the sensitivity analysis, we illustrate the effect of inflation on the optimal decision variables and the optimal expected profits of the two parties with bidirectional option contracts.

Claims for Unabsorbed Overhead on Defense Contracts.

Science.gov (United States)

1985-09-01

coat which, under the provisions of any pertinent law, regulation, or contract, cannot be included in prices, cost reimbureements , or settlements...ruled that the contractor was due some reimbursement . " - Allegheny appealed the contracting officer’s determination a second time questioning how much...amount of reimbursement . The final opinion also added the cost that was substantiated for replacement of operators and make-up pay. Therefore, the

The coordinating contracts of supply chain in a fuzzy decision environment.

Science.gov (United States)

Sang, Shengju

2016-01-01

The rapid change of the product life cycle is making the parameters of the supply chain models more and more uncertain. Therefore, we consider the coordination mechanisms between one manufacturer and one retailer in a fuzzy decision marking environment, where the parameters of the models can be forecasted and expressed as the triangular fuzzy variables. The centralized decision-making system, two types of supply chain contracts, namely, the revenue sharing contract and the return contract are proposed. To obtain their optimal policies, the fuzzy set theory is adopted to solve these fuzzy models. Finally, three numerical examples are provided to analyze the impacts of the fuzziness of the market demand, retail price and salvage value of the product on the optimal solutions in two contracts. It shows that in order to obtain more fuzzy expected profits the retailer and the manufacturer should seek as low fuzziness of demand, high fuzziness of the retail price and the salvage value as possible in both contracts.

How Law and Institutions Shape Financial Contracts: The Case of Bank Loans

OpenAIRE

Jun Qian; Philip E. Strahan

2005-01-01

We examine empirically how legal origin, creditor rights, property rights, legal formalism, and financial development affect the design of price and non-price terms of bank loans in almost 60 countries. Our results support the law and finance view that private contracts reflect differences in legal protection of creditors and the enforcement of contracts. Loans made to borrowers in countries where creditors can seize collateral in case of default are more likely to be secured, have longer mat...

Linepack storage valuation under price uncertainty

International Nuclear Information System (INIS)

Arvesen, Ø.; Medbø, V.; Fleten, S.-E.; Tomasgard, A.; Westgaard, S.

2013-01-01

Natural gas flows in pipelines as a consequence of the pressure difference at the inlet and outlet. Adjusting these pressures makes it possible to inject natural gas at one rate and withdraw at a different rate, hence using the pipeline as storage as well as transport. We study the value of using the so called pipeline linepack as a short-term gas storage and how this functionality may offset the discrepancy between the low flexibility in take-or-pay contracts and the high inherent flexibility of a gas-fired power plant. To value the storage option, we consider a cycling power plant facing volatile power prices while purchasing gas on a take-or-pay contract. We estimate a Markov regime-switching model for power prices and a mean reverting jump diffusion model for gas prices. Applying Least Squares Monte Carlo simulation to the operation of the linepack storage, we find that the storage option indeed has significant value for the plant, enabling it to better exploit the sometimes extreme price fluctuations. Finally, we show how power price volatility and jump frequency are the main value drivers, and that the size of the storage increases the value up to a point where no additional flexibility is used. - Highlights: ► Linepack, i.e., storage of natural gas en route in long pipelines, is valued for the first time. ► We find significant storage value for a North Sea case and a German gas-fired power plant. ► Power and natural gas prices are modelled realistically, as related stochastic processes with mean reversion and spikes. ► Storage operation is valued under uncertainty yielding close to exact values, without heuristics

Bandwidth allocation and pricing problem for a duopoly market

Directory of Open Access Journals (Sweden)

You Peng-Sheng

2011-01-01

Full Text Available This research discusses the Internet service provider (ISP bandwidth allocation and pricing problems for a duopoly bandwidth market with two competitive ISPs. According to the contracts between Internet subscribers and ISPs, Internet subscribers can enjoy their services up to their contracted bandwidth limits. However, in reality, many subscribers may experience the facts that their on-line requests are denied or their connection speeds are far below their contracted speed limits. One of the reasons is that ISPs accept too many subscribers as their subscribers. To avoid this problem, ISPs can set limits for their subscribers to enhance their service qualities. This paper develops constrained nonlinear programming to deal with this problem for two competitive ISPs. The condition for reaching the equilibrium between the two competitive firms is derived. The market equilibrium price and bandwidth resource allocations are derived as closed form solutions.

Store-Assistance Management for a Supply Chain with Consumer Return under Consignment Contract

Directory of Open Access Journals (Sweden)

Zhihui Wu

2017-01-01

Full Text Available In this paper, the strategy problems of pricing and store-assistance service investment are investigated for a supply chain with consumer return, where the considered supply chain under consignment contract consists of a single manufacturer and a single retailer. Firstly, we use differential equation to model the evolution of store-assistance service level and depict the effect of store-assistance service level on the return rate. By applying two-stage game, both optimal pricing and store-assistance service strategies are obtained based on the presented optimal control model. Subsequently, the committed dynamic consignment price contract is designed to coordinate and improve the performance of supply chain. Finally, a numerical example is provided to illustrate the impacts of the effectiveness of store-assistance service level and decay rate on the feasible region of corresponding contract.

Conference Reports: New developments affecting natural gas sales contracts

International Nuclear Information System (INIS)

1999-01-01

Papers presented at a conference examining and reviewing recent trends in natural gas sales contracts are contained in this volume. Conference participants heard 14 presentations, with topics including pricing provisions in gas contracts, security of supply, cross-border issues, legislative reform of electronic data interchange, digital signatures, new developments in managing contracts in a competitive environment, the changing role of natural gas aggregators, drafting 'force majeure' clauses in natural gas purchase/sale contracts and the consequences and remedies for breach of natural gas contracts. The volume also includes biographical notes, and current addresses of the speakers

Determinants of Price Stabilization in IPOs

Directory of Open Access Journals (Sweden)

Antonio Gledson de Carvalho

2010-12-01

Full Text Available In the most common mechanism for price stabilization in IPOs, the underwriter distributes stocks in excess of what was contracted (overallotment and eventually covers this short naked position by purchasing stocks in the secondary market (Aftermarket short covering , ASC. This mechanism can be used to avoid price drop or price volatility. This article provides a description of such activity in Brazil. We investigate the determinants of price stabilization in three aspects: amount overallotted, occurrence of ASC and its intensity. Our results indicate that price stabilization is an important activity in Brazilian IPOs and quite similar to that occurring in the US. The three different aspects of price stabilization have different determinants. The amount overallotted depends only on the ex-ante demand conditions. ASC occurs mostly on IPOs characterized by high risk, low ex-ante demand and carried by reputable underwriters. The intensity of the ASC increases with the riskiness and decreases with the ex-ante demand. None of the existing models fully explain these results.

Evaluation Report on Defense Contract Audit Agency Audits of Requests for Equitable Adjustment

National Research Council Canada - National Science Library

1997-01-01

Contractors may submit requests for equitable adjustment (REAs) of costs or prices as proposals under the Federal Acquisition Regulation governing contract modifications or as claims under the Contract Disputes Act...

Price formation and market mechanisms

International Nuclear Information System (INIS)

Neff, T.L.

1991-01-01

World markets for nuclear fuel have changed greatly since the 1970s. In earlier days, firms specializing in mining, conversion, enrichment and fabrication negotiated directly with end users, primarily under long term contracts at specified prices. This old model is gone. Market structure has been transformed: traditional suppliers now compete with traders, some of whom can offer a much larger menu of products and terms than primary suppliers. Utilities act as traders, converters as brokers, brokers as traders, producers as buyers, and so on. De-enrichment, de-conversion, loans, swaps, interchanges and other new kinds of transactions have proliferated. These changes in market structure and market mechanisms have been accompanied by substantial changes in price formation, that is the process by which market price is set. Today, the level and direction of price are set in a trading dominated spot market environment, fuelled by inventory liquidation and Soviet and other non-traditional supply. (author)

Composition of traders in live cattle futures contracts : behavior and implications to price discovery

OpenAIRE

Rowsell, John

1991-01-01

The concepts of risk transfer and price discovery are well developed roles for futures markets. The interaction between traders in futures markets in the transferring and acceptance of price risk contributes to the discovery of price. Interaction of traders in the risk transfer and price discovery processes is examined in this dissertation. Data employed were for live cattle futures at the Chicago Mercantile Exchange developed from the confidential daily records of reporting trader positions ...

Multiperiod Production and Ordering Policies for a Retailer-Led Supply Chain through Option Contracts

Directory of Open Access Journals (Sweden)

Nana Wan

2018-01-01

Full Text Available This paper formulates two groups of multiperiod production and ordering models with call and bidirectional option contracts for a two-party supply chain consisting of one followed supplier and one dominant retailer, respectively. Based on dynamic programming theory, we characterize the optimal policy structures for two partners in each period. We also provide an approximation for the corresponding policy parameters evaluation in two cases. Then, we investigate the impacts of different option contracts and the demand risk on the decisions and performances of two members. Our results suggest that, whether concerning call or bidirectional option contracts, the optimal policies for two members always follow a base stock type. When the price parameters are the same for different option contracts, the service levels of both the system and the retailer are higher with call option contracts than with bidirectional ones, whereas the retailer’s inventory risk is lower with bidirectional option contracts than with call ones. Under the same conditions stated above, call option contracts can always benefit the supplier, but not the retailer. Owing to the retailer’s dominant position, call option contracts are better choice for the supply chain if the option (exercise price is low (high, while bidirectional option contracts are more suitable choice for the supply chain if the option (exercise price is high (low. In addition, an increase in the demand risk would prompt the supplier to increase his production quantity and the retailer to reduce the initial firm order quantity, either with call or bidirectional option contracts.

A utility theory approach for insurance pricing

Directory of Open Access Journals (Sweden)

Mohsen Gharakhani

2015-11-01

Full Text Available Providing insurance contract with “deductible” is beneficial for both insurer and insured. In this paper, we provide a utility modeling approach to handle insurance pricing and evaluate the tradeoff between discount benefit and deductible level. We analyze four different pricing problems of no insurance, full insurance coverage, insurance with β% deductible and insurance with D-dollar deductible based on a given utility function. A numerical example is also used to illustrate some interesting results.

48 CFR 215.404-71-3 - Contract type risk and working capital adjustment.

Science.gov (United States)

2010-10-01

.... Cost-plus-incentive-free (4) 1.0 0 to 2. Cost-plus-fixed-fee (4) 0.5 0 to 1. Time-and-materials... considered cost-plus-fixed-fee contracts for the purposes of assigning profit values. They shall not receive... CONTRACTING BY NEGOTIATION Contract Pricing 215.404-71-3 Contract type risk and working capital adjustment. (a...

Prices dip, activity increases in unrestricted uranium market

International Nuclear Information System (INIS)

Anon.

1993-01-01

April's activity in the restricted uranium market fluctuated in the same range as that observed in March. At the same time, NUKEM detects a weakening of prices in the unrestricted market to $7.45-$7.65. Unrestricted buyers seem to have detected lower prices as well; much of the new demand noted this month emerged in the unrestricted segment of the market. With this issue, NUKEM inaugurates a new market statistic. To better follow developments in the conversion market, we will report a spot price range for conversion services. This price measure will be derived in a manner analogous to NUKEM's other spot market price ranges. We will continue to publish the current NUKEM price range for new contracts for a few months. If you wish to retain the old conversion contract price range in future editions, please contact our US office. Four deals for near term delivery occurred in the uranium market in April, resulting in spot market transaction volume of 2.5 million lbs U3O8 equivalent. In the first week, a US non-utility purchased a small quantity of enriched uranium product from an intermediary in a spot transaction representing about 75,000 lbs U3O8. The second week saw the stealthy purchase of Portland General Electric's inventory of natural and enriched uranium. The buyer of PGE's 1.1 million lbs U3O8 equivalent has achieved an unusual degree of anonymity. Also during the second week, a US utility bought a small quantity of enriched uranium containing less than 25,000 lbs natural U3O8 equivalent

77 FR 76939 - Defense Federal Acquisition Regulation Supplement: Definition of Cost or Pricing Data (DFARS Case...

Science.gov (United States)

2012-12-31

... cost or pricing data'' in its place. PART 217--SPECIAL CONTRACTING METHODS 217.7401 [Amended] 0 11... Cost or Pricing Data (DFARS Case 2011-D040) AGENCY: Defense Acquisition Regulations System, Department... ``certified cost or pricing data'' and ``data other than certified cost or pricing data.'' The DFARS changes...

Effectiveness of the management of price risk methodologies for the corn market based on trading signals

Directory of Open Access Journals (Sweden)

W. Rossouw

2013-03-01

Full Text Available Corn production is scattered geographically over various continents, but most of it is grown in the United States. As such, the world price of corn futures contracts is largely dominated by North American corn prices as traded on the Chicago Board of Trade. In recent years, this market has been characterised by an increase in price volatility and magnitude of price movement as a result of decreasing stock levels. The development and implementation of an effective and successful derivative price risk management strategy based on the Chicago Board of Trade corn futures contract will therefore be of inestimable value to market stakeholders worldwide. The research focused on the efficient market hypothesis and the possibility of contesting this phenomenon through an application of a derivative price risk management methodology. The methodology is based on a combination of an analysis of market trends and technical oscillators with the objective of generating returns superior to that of a market benchmark. The study found that market participants are currently unable to exploit price movement in a manner which results in returns that contest the notion of efficient markets. The methodology proposed, however, does allow the user to consistently achieve returns superior to that of a predetermined market benchmark. The benchmark price for the purposes of this study was the average price offered by the market over the contract lifetime, and as such, the efficient market hypothesis was successfully contested

Oil prices and long-run risk

Science.gov (United States)

Ready, Robert Clayton

I show that relative levels of aggregate consumption and personal oil consumption provide an excellent proxy for oil prices, and that high oil prices predict low future aggregate consumption growth. Motivated by these facts, I add an oil consumption good to the long-run risk model of Bansal and Yaron [2004] to study the asset pricing implications of observed changes in the dynamic interaction of consumption and oil prices. Empirically I observe that, compared to the first half of my 1987--2010 sample, oil consumption growth in the last 10 years is unresponsive to levels of oil prices, creating an decrease in the mean-reversion of oil prices, and an increase in the persistence of oil price shocks. The model implies that the change in the dynamics of oil consumption generates increased systematic risk from oil price shocks due to their increased persistence. However, persistent oil prices also act as a counterweight for shocks to expected consumption growth, with high expected growth creating high expectations of future oil prices which in turn slow down growth. The combined effect is to reduce overall consumption risk and lower the equity premium. The model also predicts that these changes affect the riskiness of of oil futures contracts, and combine to create a hump shaped term structure of oil futures, consistent with recent data.

The origins of a coming crisis : renewal of the Churchill Falls contract

International Nuclear Information System (INIS)

Feehan, J.P.

2005-01-01

The renewal clause of the 1969 power contract between Hydro-Quebec and the Churchill Falls (Labrador) Corporation (CFLCo) takes effect in 2016. The contract concerns the development and sale of electricity from the Churchill Falls hydro site and has been a matter of discontent in Newfoundland and Labrador because it stipulates that almost all of the power be sold to Hydro-Quebec on a very long-term basis at very low and declining prices. The government of Newfoundland and Labrador has challenged the contract in several ways since the 1970s, all unsuccessfully. During the renewal period, the price is preset at 2 mills (0.2 cents) per kilowatt hour. Even in the late 1960s, this price was extraordinarily low and not achievable from any new energy source. The average wholesale price of electricity in Ontario in 2004 was 52.2 mills per kilowatt hour. With 30 million megawatt hours of electricity involved in this renewal, the potential gap between the value of the power and the amount paid to CFLCo was about $1 billion a year by 2004 and rising. This paper presents the results of the first systematic investigation into how such an extraordinary onerous condition got into the contract. It considers the process that led to the contract and related arrangements. It also presents uncited archival documentation that gives new and revealing facts about the origins of the renewal clause. The findings give rise to questions of business ethics and law. This paper also reviews the early discussions and the interrelated commercial and political challenges that had to be overcome for the two provinces to come to an agreement on a comprehensive Letter of Intent. The contract negotiations and events that led to the renewal clause were outlined along with the implications for Hydro-Quebec, CFLCo and the government of Newfoundland. 13 refs., 2 appendices

The Demand for Child Care Quality. An Hedonic Price Theory Approach.

Science.gov (United States)

Hagy, Alison P.

1998-01-01

An implicit price for child care staff-to-child ratio was used to study demand for child care quality. Direct purchase-of-service contracts or vouchers, which subsidize only providers meeting state regulations, effectively lower implicit price and have little influence on the demand for quality. (Author/SK)

Contract Coordination in Dual Sourcing Supply Chain under Supply Disruption Risk

Directory of Open Access Journals (Sweden)

Tong Shu

2015-01-01

Full Text Available This paper explores a coordination model for a three-echelon supply chain including two different manufacturers, one distributer and one retailer via the combined option and back contracts. And one manufacturer provides the high wholesale price with low supply disruption risk and the other is completely the opposite. This differs from the previous supply chain coordination model. Firstly, supply disruption is added to the three-echelon supply chain. Secondly, considering the coordination of the supply chain, we deploy the combined option and back contracts which are seldom used in the previous study. Furthermore, it is interesting that supply disruption risk and buyback factor do not affect the distributor’s order quantity from the manufacturer who has low product price and unreliable operating ability, while the order quantity increases with the rise of option premium and option strike price. The distributor’s order quantity from the manufacturer, which has high product price and reliable operating ability, increases with the rise of supply disruption risk but decreases when the buyback factor, option premium, and option strike price decrease.

48 CFR 22.101-2 - Contract pricing and administration.

Science.gov (United States)

2010-10-01

... therefore may have an impact on the allowability of costs for cost-reimbursement contracts or for... costs such as rent and depreciation), but because of reduced production, their proportion of the unit...

Evolution of the European gas market on the long term. Organisation and price

International Nuclear Information System (INIS)

Ouvry, V.

1998-01-01

The objective of this work is to shed light upon the future organization of the European gas market with an emphasis on price matters. There are nowadays few producers of gas on the market, most of whom hold long-term contracts with gas companies. Gas pricing is based on the net-back principle. The actual debate on liberalization of the gas market and the growing pressure from industrial customers to obtain lower prices addresses the problem of the future organisation of the market and the potential impact of the introduction of third party access. We first analyse the main actors of the gas market, their strategy and the actual market organization market. Two different logics are considered hereunder: a market approach: the competition theory provides efficient tools to analyse the evolution of competition depending on numerous factors. It appears that the strategy of all actors and particularly of producers will be the main determinant of the future competition. The oligopoly theory includes oligopolistic behaviours modelizations. The application of the Cournot's model leads to prices ranging from 1,6 to 3,7 $/MBtu; a contractual approach: today, gas is essentially exchanged through long term contracts, which allow for long-term management of investments and supply security. Two operators negotiate the price, which ultimately mirrors their respective leverage. The transaction cost theory clearly shows the necessity of including transaction costs, especially when optimizing the duration of the contract. The gas prices escalation is nowadays partially obsolete and unadapted to customer needs. Escalation on coal, electricity price or inflation should soon be considered. The theories of negotiation highlight the importance of the operators' marketing power during gas price fixation Applying Nash and Harsanyi-Selten's negotiation models results in a scale of 2,4 to 3,5 $/MBtu of the gas price at the actual supply and demand conditions. Both approaches lead to similar

Changing incentives for long-term gas contracts

International Nuclear Information System (INIS)

Bohi, D.R.

1992-01-01

There is much concern about the absence of long-term gas contracts with fixed price and quantity conditions, which until recent years was the standard way of doing business in the gas industry. These types of contracts performed a valuable service in the development of the gas industry, and there comparative absence today is sometimes thought to be one reason for the current malaise in the industry. One hears the argument that there must be some kind of 'market failure' that prevents buyers and sellers from entering into these long term arrangements, and recent changes in state and federal regulations are often cited as the cause of the problem. The purpose of the author's remarks is to argue that what is taken as a breakdown in the market may be simply a reaction to a decline in economic incentives to enter into long-term contracts with rigid price and quantity terms. This is, in other words, simply one more aspect of change in the gas business that Frank Heintz referred to in his opening remarks this morning. The author starts by giving a brief description of the motives for engaging in long-term contracts, and then describes how incentives to use long-term contracts have declined for both gas buyers and gas sellers. He concludes that the decline in the use of long-term contracts is not cause for regulatory concern, but a result of the continuing transformation of the gas business to one that more closely resembles other commodity markets

STS pricing policy

Science.gov (United States)

Lee, C. M.; Stone, B.

1982-01-01

In 1977 NASA published Shuttle Reimbursement Policies for Civil U.S. Government, DOD and Commercial and Foreign Users. These policies were based on the principle of total cost recovery over a period of time with a fixed flat price for initial period to time to enhance transition. This fixed period was to be followed with annual adjustments thereafter, NASA is establishing a new price for 1986 and beyond. In order to recover costs, that price must be higher than the initial fixed price through FY 1985. NASA intends to remain competitive. Competitive posture includes not only price, but other factors such as assured launch, reliability, and unique services. NASA's pricing policy considers all these factors.

Natural gas pricing

International Nuclear Information System (INIS)

Freedenthal, C.

1993-01-01

Natural gas pricing is the heart and soul of the gas business. Price specifically affects every phase of the industry. Too low a price will result in short supplies as seen in the mid-1970s when natural gas was scarce and in tight supply. To fully understand the pricing of this energy commodity, it is important to understand the total energy picture. In addition, the effect and impact of world and US economies, and economics in general are crucial to understanding natural gas pricing. The purpose of this presentation will be to show the parameters going into US natural gas pricing including the influence of the many outside industry factors like crude oil and coal pricing, market drivers pushing the gas industry, supply/demand parameters, risk management for buyers and sellers, and other elements involved in pricing analysis

41 CFR 102-85.5 - By what authority is the pricing policy in this part prescribed?

Science.gov (United States)

2010-07-01

... pricing policy in this part prescribed? 102-85.5 Section 102-85.5 Public Contracts and Property Management...-PRICING POLICY FOR OCCUPANCY IN GSA SPACE Pricing Policy-General § 102-85.5 By what authority is the pricing policy in this part prescribed? (a) General authority is granted in the Federal Property and...

Optimization of portfolio of contracts for companies of electric power generation

International Nuclear Information System (INIS)

Gunn, Laura Keiko; Silva, Elisa Bastos; Correia, Paulo de Barros

2010-01-01

Portfolio optimization is a technique widely used to select investments in economic and financial zones. In the Brazilian Electric Market the portfolio models must consider not only different types of contracts used in the free market, but also different types of markets: the free market, the captive market and the spot market. Normally, the question is knowing which proportion of energy should be sold in each market, in order to maximize the return and minimize the risk. This article deals with a problem from the point of view of a power generator, where their objective is to maximize its profit, to serve their obligations regarding the delivery of energy and minimizing the risk associated with the occurrence of Spot Price - minimum (Spot Price). It is considered that the generator has flexible contracts and inflexible contracts to sell the energy. Inflexible contracts have delivery obligations of fixed energy and flexible contracts allow, the holder of the flexibility, to deliver or to receive an amount of variable energy. In this case, the holder of flexibility may be the purchaser or the generator. (author)

Equilibrium and matching under price controls

NARCIS (Netherlands)

Herings, P.J.J.

2015-01-01

The paper considers a one-to-one matching with contracts model in the presence of price controls. This set-up contains two important streams in the matching literature, those with and those without monetary transfers, as special cases and allows for intermediate cases with some restrictions on the

Alternative contract mechanisms for environmental restoration

International Nuclear Information System (INIS)

Billings, R.M.; Geotze, P.; Billings, B.G.

1994-01-01

Remediation and investigation contracting mechanisms used by Billings and Associates, Inc. (BAI), for operations within New Mexico are described, and the advantages and disadvantages are considered. Methods discussed are: time and materials, unit pricing, and pay for performance. An emphasis is placed upon the pay for performance method. While there are alternative contracting mechanisms, the state has thus far been limited to traditional contract types, such as time and materials. While the undertaking of a pay for performance remediation scenario presents higher risk with an opportunity for comparable reward, application of this type of alternative contracting has been slow to materialize. The New Mexico Environment Department/Underground Storage Tank Bureau is mandated by regulation to seek complete remediation of petroleum contaminated soils and ground water within the shortest practicable period of time

78 FR 5446 - Federal Acquisition Regulation; Submission for OMB Review; Price Redetermination

Science.gov (United States)

2013-01-25

... the fundamental purposes of the Paperwork Reduction Act because of the burden it puts on the entity... onerous, and will require a contractor to implement accounting systems that are equipped to account for...-price contract with prospective price redetermination would have accounting systems that allow for...

CONTRACT FARMING PRACTICE IN INDIAN PUNJAB: FARMERS’ PERSPECTIVE

Directory of Open Access Journals (Sweden)

Nivedita Sharma

2014-01-01

Full Text Available This paper examines the status quo of contract farming in Indian Punjab from the farmers‟ perspective. The analysis is based on the field survey of three districts of the state covering 300 contract farmers. It is observed that agribusiness normalization has taken hold of the CF practice and farmers are facing its brunt. Withdrawal of extension services, reneging on prices and procurement are the major issues afflicting CF. Lack of adjudication is making contract farming exploitative in approach and the study recommends vigilant and strong intervention of the government.

Fire Sales and House Prices

DEFF Research Database (Denmark)

Andersen, Steffen; Meisner Nielsen, Kasper

We exploit a natural experiment in Denmark to investigate when forced sales lead to fire sale discounts. Forced sales result from sudden deaths of house owners in an institutional environment in which beneficiaries are forced to settle the estate, and hence sell the house, within 12 months. We...... and the urgency of the sale also affect the average discount: Discounts are larger when house prices contract, in thin markets where demand is lower, and when the sale is more likely to be a fire sale because of financial or liquidity constraints. Late fire sales are more likely when the house price...... forced sales lead to fire sale discounts....

On the equivalence of selected supply chain contract mechanism

OpenAIRE

Nalla, V.R.; Venugopal, V.; Veen, van der, J.A.A.

2005-01-01

This paper models a situation where a Supplier sells a fashion product to a Buyer who in turn sells the product to the consumers. Both the Supplier and the Buyer set their own selling price. For the above setting this paper designs different contract mechanisms such as Revenue sharing, Profit sharing, Quantity discounts, License fee and Mail-in-rebate contract mechanisms. The paper shows that the designed contract mechanism can provide both coordination and win-win. The paper also establishes...

On the equivalence of selected supply chain contract mechanisms

OpenAIRE

Vijayender Reddy Nalla; Jack A.A. van der Veen; Venu Venugopal

2005-01-01

This paper models a situation where a Supplier sells a fashion product to a Buyer who in turn sells the product to the consumers. Both the Supplier and the Buyer set their own selling price. For the above setting this paper designs different contract mechanisms such as Revenue sharing, Profit sharing, Quantity discounts, License fee and Mail-in-rebate contract mechanisms. The paper shows that the designed contract mechanism can provide both coordination and win-win. The paper also establishes...

Natural gas price uncertainty and the cost-effectiveness of hedging against low hydropower revenues caused by drought

Science.gov (United States)

Kern, Jordan D.; Characklis, Gregory W.; Foster, Benjamin T.

2015-04-01

Prolonged periods of low reservoir inflows (droughts) significantly reduce a hydropower producer's ability to generate both electricity and revenues. Given the capital intensive nature of the electric power industry, this can impact hydropower producers' ability to pay down outstanding debt, leading to credit rating downgrades, higher interests rates on new debt, and ultimately, greater infrastructure costs. One potential tool for reducing the financial exposure of hydropower producers to drought is hydrologic index insurance, in particular, contracts structured to payout when streamflows drop below a specified level. An ongoing challenge in developing this type of insurance, however, is minimizing contracts' "basis risk," that is, the degree to which contract payouts deviate in timing and/or amount from actual damages experienced by policyholders. In this paper, we show that consideration of year-to-year changes in the value of hydropower (i.e., the cost of replacing it with an alternative energy source during droughts) is critical to reducing contract basis risk. In particular, we find that volatility in the price of natural gas, a key driver of peak electricity prices, can significantly degrade the performance of index insurance unless contracts are designed to explicitly consider natural gas prices when determining payouts. Results show that a combined index whose value is derived from both seasonal streamflows and the spot price of natural gas yields contracts that exhibit both lower basis risk and greater effectiveness in terms of reducing financial exposure.

Examination of the Cost-of-Carry Formula for Futures Contracts on WIG20. Wavelet and Nonlinear Cointegration Analysis

Science.gov (United States)

Bruzda, Joanna

The instantaneous and non-instantaneous dependences between spot and futures index prices has been subject of numerous empirical investigations. The theoretical background of these studies is the cost-ofcarry model introduced by [15]. The cost-of-carry model is an arbitrage relationship based on comparison between two alternative methods of acquiring an asset at some future date. In the first method an asset is purchased now and held until this future date. In the second case a futures contract with maturity on the required date is bought. The present value of the futures contract is invested at the risk free interest rate until delivery of the underlying asset at the maturity date. Arbitrage should ensure that the difference between the current asset price and the futures contract price is the cost of carrying the asset, which involves dividend yields and interest rates. The cost-of-carry formula gives the fair price of the futures contract: F_{t,T} = S_t e^{left( {r_t - d_t } right)left( {T - t} right)} where St is the security index price at time t, F t,T is the index futures price at time t with maturity T, r t is the risk free interest rate, d t is the dividend yield on the security index, and (T — t) is the time to maturity of the futures contract. Taking logarithms of both sides of equation (1) we get: f_{t,T} = s_t + left( {r_t - d_t } right)left( {T - t} right)

Automatic demand response referred to electricity spot price. Demo description

International Nuclear Information System (INIS)

Grande, Ove S.; Livik, Klaus; Hals, Arne

2006-05-01

This report presents background, technical solution and results from a test project (Demo I) developed in the DRR Norway) project. Software and technology from two different vendors, APAS and Powel ASA, are used to demonstrate a scheme for Automatic Demand Response (ADR) referred to spot price level and a system for documentation of demand response and cost savings. Periods with shortage of energy supply and hardly any investments in new production capacity have turned focus towards the need for increased price elasticity on the demand side in the Nordic power market. The new technology for Automatic Meter Reading (AMR) and Remote Load Control (RLC) provides an opportunity to improve the direct market participation from the demand side by introducing automatic schemes that reduce the need for customer attention to hourly market prices. The low prioritized appliances, and not the total load, are in this report defined as the Demand Response Objects, based on the assumption that there is a limit for what the customers are willing to pay for different uses of electricity. Only disconnection of residential water heaters is included in the demo, due to practical limitations. The test was performed for a group of single family houses over a period of 2 months. All the houses were equipped with a radio controlled 'Ebox' unit attached to the water heater socket. The settlement and invoicing were based on hourly metered values (kWh/h), which means that the customer benefit is equivalent to the accumulated changes in the electricity cost per hour. The actual load reduction is documented by comparison between the real meter values for the period and a reference curve. The curves show significant response to the activated control in the morning hours. In the afternoon it is more difficult to register the response, probably due to 'disturbing' activities like cooking etc. Demo I shows that load reduction referred to spot price level can be done in a smooth way. The experiences

LPTA versus Tradeoff: Analysis of Contract Source Selection Strategies and Performance Outcomes

Science.gov (United States)

2016-06-15

7 - Naval Postgraduate School source selection strategies to be made on a best value basis and not the lowest price ” (Office of...cost is an evaluation factor in all procurements, regardless of the source selection strategy chosen. In evaluating cost or price , FAR...contract performance is minimal, cost or price may play a dominant role in source selection. The less definitive the requirement, the more

48 CFR 538.272 - MAS price reductions.

Science.gov (United States)

2010-10-01

... maintain during the contract period the negotiated price/discount relationship (and/or term and condition relationship) between the eligible ordering activities and the offeror's customer or category of customers on... customers) that results in a less advantageous relationship between the eligible ordering activities and...

Industrial Pricing: Theory and Managerial Practice

OpenAIRE

Peter M. Noble; Thomas S. Gruca

1999-01-01

We organize the existing theoretical pricing research into a new two-level framework for industrial goods pricing. The first level consists of four pricing situations: New Product, Competitive, Product Line, and Cost-based. The second level consists of the pricing strategies appropriate for a given situation. For example, within the new product pricing situation, there are three alternative pricing strategies: Skim, Penetration, and Experience Curve pricing. There are a total of ten pricing s...

ASSESSING THE RELATIONSHIP BETWEEN MARKET FACTORS AND REGIONAL PRICE DYNAMICS IN U.S. CATTLE MARKETS

OpenAIRE

Walburger, Allan M.; Foster, Kenneth A.

1997-01-01

Regional live cattle prices are decomposed into two components: (a) a trend common to all regional cattle price series and (b) regional deviations or price dynamics around that trend. Tests are developed to determine if market factors are related to the regional price deviations around a common trend. Slaughter volume, distance between a market and the next closest, and forward contract deliveries are significantly related to price deviations from the estimated common trend.

Electricity price and tariff problems and approaches to their solving

International Nuclear Information System (INIS)

Piha, M.

1994-01-01

The following problems are discussed: (i) integrity of the tariff system, price setting and price control in relation to the secondary market; (ii) long-term contracting relations between the subjects - primary and secondary market entities; (iii) the setting of electricity purchase prices from independent producers; (iv) international integration of national systems, including electricity import prices; (v) cross-subsidies within the system; (vi) identification of adverse environmental impacts and their remediation by incorporating the associated costs into electricity prices; (vii) the cost basis of prices; (viii) objectivization of the cost basis; (ix) unification/diversification of the price and tariff levels and the associated distribution rent problem; (x) rational structure of the tariff system with respect to its complexity and ties to the measuring and control instrumentation and their efficiency; and (xi) breakdown of the costs of heat and electricity cogeneration and a fair price setting. (J.B.)

S. 446: This Act may be cited as the Price-Anderson Financial Accountability Amendments of 1989, introduced in the Senate, One Hundred First Congress, First Session, February 23, 1989

International Nuclear Information System (INIS)

Anon.

1989-01-01

S. 446 would amend the Price-Anderson provisions of the Atomic Energy Act of 1954 to provide for the financial accountability of certain contractors of the Department of Energy. The bill would allow the Attorney General to bring action in court to recover any amount paid by the Federal Government to a contractor for public liability resulting from gross negligence or willful misconduct of such contractor (or subcontractor or supplier of such contractor). The amount recoverable would not exceed the total contract price received by the contractor. The President may exempt a contractor from some provisions if he determines it is necessary to protect the national security. Renegotiation of contracts is allowed. The amendments would take effect one year after the date of enactment of this law

A method for short term electricity spot price forecasting

International Nuclear Information System (INIS)

Koreneff, G.; Seppaelae, A.; Lehtonen, M.; Kekkonen, V.; Laitinen, E.; Haekli, J.; Antila, E.

1998-01-01

In Finland, the electricity market was de-regulated in November 1995. For the electricity purchase of power companies this has caused big changes, since the old tariff based contracts of bulk power supply have been replaced by negotiated bilateral short term contracts and by power purchase from the spot market. In the spot market, in turn, there are at the present two strong actors: The electricity exchange of Finland and the Nordic power pool which is run by the Swedish and Norwegian companies. Today, the power companies in Finland have short term trade with both of the electricity exchanges. The aim of this chapter is to present methods for spot price forecasting in the electricity exchange. The main focus is given to the Finnish circumstances. In the beginning of the presentation, the practices of the electricity exchange of Finland are described, and a brief presentation is given on the different contracts, or electricity products, available in the spot market. For comparison, the practices of the Nordic electricity exchange are also outlined. A time series technique for spot price forecasting is presented. The structure of the model is presented, and its validity is tested using real case data obtained from the Finnish power market. The spot price forecasting model is a part of a computer system for distribution energy management (DEM) in a de-regulated power market

A method for short term electricity spot price forecasting

Energy Technology Data Exchange (ETDEWEB)

Koreneff, G; Seppaelae, A; Lehtonen, M; Kekkonen, V [VTT Energy, Espoo (Finland); Laitinen, E; Haekli, J [Vaasa Univ. (Finland); Antila, E [ABB Transmit Oy (Finland)

1998-08-01

In Finland, the electricity market was de-regulated in November 1995. For the electricity purchase of power companies this has caused big changes, since the old tariff based contracts of bulk power supply have been replaced by negotiated bilateral short term contracts and by power purchase from the spot market. In the spot market, in turn, there are at the present two strong actors: The electricity exchange of Finland and the Nordic power pool which is run by the Swedish and Norwegian companies. Today, the power companies in Finland have short term trade with both of the electricity exchanges. The aim of this chapter is to present methods for spot price forecasting in the electricity exchange. The main focus is given to the Finnish circumstances. In the beginning of the presentation, the practices of the electricity exchange of Finland are described, and a brief presentation is given on the different contracts, or electricity products, available in the spot market. For comparison, the practices of the Nordic electricity exchange are also outlined. A time series technique for spot price forecasting is presented. The structure of the model is presented, and its validity is tested using real case data obtained from the Finnish power market. The spot price forecasting model is a part of a computer system for distribution energy management (DEM) in a de-regulated power market

Hemodynamics of a functional centrifugal-flow total artificial heart with functional atrial contraction in goats.

Science.gov (United States)

Shiga, Takuya; Shiraishi, Yasuyuki; Sano, Kyosuke; Taira, Yasunori; Tsuboko, Yusuke; Yamada, Akihiro; Miura, Hidekazu; Katahira, Shintaro; Akiyama, Masatoshi; Saiki, Yoshikatsu; Yambe, Tomoyuki

2016-03-01

Implantation of a total artificial heart (TAH) is one of the therapeutic options for the treatment of patients with end-stage biventricular heart failure. There is no report on the hemodynamics of the functional centrifugal-flow TAH with functional atrial contraction (fCFTAH). We evaluated the effects of pulsatile flow by atrial contraction in acute animal models. The goats received fCFTAH that we created from two centrifugal-flow ventricular assist devices. Some hemodynamic parameters maintained acceptable levels: heart rate 115.5 ± 26.3 bpm, aortic pressure 83.5 ± 10.1 mmHg, left atrial pressure 18.0 ± 5.9 mmHg, pulmonary pressure 28.5 ± 9.7 mmHg, right atrial pressure 13.6 ± 5.2 mmHg, pump flow 4.0 ± 1.1 L/min (left) 3.9 ± 1.1 L/min (right), and cardiac index 2.13 ± 0.14 L/min/m(2). fCFTAH with atrial contraction was able to maintain the TAH circulation by forming a pulsatile flow in acute animal experiments. Taking the left and right flow rate balance using the low internal pressure loss of the VAD pumps may be easier than by other pumps having considerable internal pressure loss. We showed that the remnant atrial contraction effected the flow rate change of the centrifugal pump, and the atrial contraction waves reflected the heart rate. These results indicate that remnant atria had the possibility to preserve autonomic function in fCFTAH. We may control fCFTAH by reflecting the autonomic function, which is estimated with the flow rate change of the centrifugal pump.

Evaluarea eficienţei economice a comercializării masei lemnoase prin contracte pe termen lung, cu o aplicaţie la fag [ Evaluation of economic efficiency of marketing timber by long-term contracts, with an application to beech

Directory of Open Access Journals (Sweden)

Nichiforel Liviu

2015-08-01

Full Text Available In Romania long term contracts for the selling of timber from public forests have been implemented in 2002 for a period of 10 years as a support for investments in wood processing companies. Currently there is a public debate about their efficiency considering their impact on the concentration of timber demand in the hands of the companies which have accessed such contracts. In this context the paper analysis the economic efficiency of the implementation of long term contracts in the Forest Department Suceava considering the transactions of a processing company specialized on beech timber. Methodologically the paper uses two sets of data: 167 stands sold based on long-term contracts in the period 2009-2013 and 1725 stands sold in public actions from 2009 to 2011. The second set of data has been used for a regression analysis as to identify the relation between the stumpage prices obtain in public auctions and the stand characteristics seen as explanatory variables. The resulted regression model was employed to predict the stumpage value for those stands sold via long-term contracts in the scenario they have been sold by public auction. The results show that for the analysed period the prices obtained from long-term contracts have been 32% higher compared with the prices from public auction. Nevertheless the results are interpreted in the particular context provided by the limited competition on the beech market and the decrease of the timber prices brought by the 2009 financial crises. The findings have policy implications for the future development and use of long-term contracts.

7 CFR 250.53 - Contract provisions.

Science.gov (United States)

2010-01-01

... the food service management company will ensure that its system of inventory management will not... recipient agency's fixed-price contract with a food service management company. Such provisions must also be... management company must credit the recipient agency for the value of all donated foods received for use in...

The impact of market changes on long-term take-or-pay export contracts for LNG and pipeline gas from Mena regions: lessons from Europe

International Nuclear Information System (INIS)

Frisch, Morten

1999-01-01

This paper examines the contracting structures and prices of liquefied natural gas (LNG) and gas pipeline projects, pricing arrangements in Great Britain, the continental West European gas price adjustment formula, and pricing of LNG transport by ship. The price review introduced in Continental North West European contracts, gas liberalisation and price shocks in Great Britain, the demise of British Gas, and gas liberalisation in continental Europe are discussed. Gas suppliers and European market liberalisation are considered, and MENA (Middle East and North Africa) gas supply arrangements, European buyers, and future price adjustment methods are addressed. (uk)

Long term contracts signed in Slovak timber business

International Nuclear Information System (INIS)

Haluza, I.

2005-01-01

The Slovak timber business is changing. The state-owned company, SR Forests, which cuts more then 50% of Slovak timber has signed long term agreements with major domestic timber processing companies - Smrecina, the Rettenmeier Tatra Timber saw mill in Liptovsky Mikulas and two paper mills - Mondi SCP Ruzomberok and Kappa Sturovo. In the past, only quarterly contracts were signed. Now, for the first time, two-year contracts have been signed that should help the timber processing industry and the forestry sector. The General Director of Lesy SR (SR Forests), Karol Vins, hopes for better sale prices. Company headquarters wants to maintain better control of prices than under the old system of timber sales by its branches. In the opinion of the General Director of the Forestry Section at the Ministry of Agriculture, long term contracts will guarantee a stable delivery of timber to processing companies, giving investors in new production capacity a better position in negotiations with banks regarding financing. According to K. Vins, long term contracts have so far only been negotiated with major timber processing companies which are mostly controlled by foreign capital and therefore have good payment discipline. The Association of the Timber Processing Industry is unhappy regarding developments and Lesy SR has not invited domestic companies to these negotiations

Implications of globalization on pricing for Canadian crudes

Energy Technology Data Exchange (ETDEWEB)

Black, R. [Canadian Occidental Petroleum Ltd., Calgary, AB (Canada)

1998-05-01

The effects of globalization on Canadian crude oil prices was discussed. Since deregulation in October 1985, Canadian crude oil has competed directly against international crude oil through the use of the NYMEX contract price for light sweet crude oil as the base for establishing the price for Canadian crudes. Prior to that date, Alberta crude was marketed by the Alberta Petroleum Marketing Commission using the old block matrix which was loosely tied to the world market price. In addition to world crude oil prices other factors that affect the price of Canadian crude oil include technology impacts and global integration. Also, when the Sarnia to Montreal pipeline (Line 9) is reversed to bring offshore crude oil into the Ontario refining community, Canadian producers can expect some adverse effects on the price they are paid for their products leading up to the reversal as refiners start to swing over to their alternate suppliers. The offshore supply is expected to be about 140,000 barrels/day of light sweet crude oil, but all grades of Canadian crude oil will be affected.

Proposal for the Award of a Contract for the Supply of Industrial Pressure Transducers for the LHC

CERN Document Server

2002-01-01

This document concerns the award of a contract for the supply of industrial pressure transducers for the LHC. Following a market survey carried out among 47 firms in eight Member States and a price enquiry (DO-19000/LHC/LHC) for qualifying prototypes sent to 12 firms in three Member States, a call for tenders (IT-2815/LHC/LHC) was sent on 19 September 2002 to two firms in one Member State. By the closing date, CERN had received two tenders from two firms. The Finance Committee is invited to agree to the negotiation of a contract with BAUMER ELECTRIC (CH), the lowest bidder, for the supply of 594 pressure transducers for a total amount of 343 028 Swiss francs, not subject to revision, with options for up to 60 additional pressure transducers, for an additional amount of 34 649 Swiss francs, not subject to revision, bringing the total amount to 377 677 Swiss francs, not subject to revision. The firm has indicated the following distribution by country of the contract value covered by this adjudication proposal: ...

Price discovery in dual-class shares across multiple markets

DEFF Research Database (Denmark)

Fernandes, Marcelo; Scherrer, Cristina

2018-01-01

data to study price discovery in dual-class Brazilian stocks and their ADRs. We find that the foreign market is at least as informative as the home market and that shocks in the dual-class premium entail a permanent effect in normal times, but transitory in periods of financial distress......This paper proposes a new measure of price discovery that uses the spectral decomposition. The methodology is especially important in the context of large price systems, such as interest rate parities with spot and futures contracts or dual-class shares in multiple markets. We employ high frequency...

48 CFR 915.404-4-70-5 - Special considerations-contracts with nonprofit organizations (other than educational institutions).

Science.gov (United States)

2010-10-01

... TYPES CONTRACTING BY NEGOTIATION Contract Pricing 915.404-4-70-5 Special considerations—contracts with... 48 Federal Acquisition Regulations System 5 2010-10-01 2010-10-01 false Special considerations-contracts with nonprofit organizations (other than educational institutions). 915.404-4-70-5 Section 915.404...

48 CFR 1352.201-72 - Contracting Officer's Representative (COR).

Science.gov (United States)

2010-10-01

... COR is also responsible for the final inspection and acceptance of all deliverables and such other... otherwise obligate the Government or authorize any changes which affect the contract price, terms or...

Energy prices in the presence of plant indivisibilities

International Nuclear Information System (INIS)

Fischer, Ronald; Serra, Pablo

2003-01-01

In several countries (Chile, Bolivia, Argentina and Peru, among others), power plants are dispatched according to merit order, i.e. based on the marginal operating costs of the plants. In this scheme, the operating plant with the highest marginal cost sets the spot price at which firms trade the energy required to fulfill their contracts. The underlying peak-load pricing model assumes that plants can operate at any level up to capacity, whereas real power plants have minimum operating levels. This implies that a low cost plant might have to reduce its supply in order to accommodate the minimum operating level of a more expensive power plant. This paper derives the welfare maximizing price rules in this case and shows that the standard peak-load pricing rules no longer apply

Quantum computational finance: Monte Carlo pricing of financial derivatives

OpenAIRE

Rebentrost, Patrick; Gupt, Brajesh; Bromley, Thomas R.

2018-01-01

Financial derivatives are contracts that can have a complex payoff dependent upon underlying benchmark assets. In this work, we present a quantum algorithm for the Monte Carlo pricing of financial derivatives. We show how the relevant probability distributions can be prepared in quantum superposition, the payoff functions can be implemented via quantum circuits, and the price of financial derivatives can be extracted via quantum measurements. We show how the amplitude estimation algorithm can...

Reflections on Costing, Pricing and Income Measurement at UK Higher Education Institutions

Science.gov (United States)

Oduoza, Chike F.

2009-01-01

In these days of radical contraction of funding and expansion in student numbers, universities are under pressure to prioritise their resources, as well as to achieve effective costing and pricing to support judgement and decision making for funding and any external work undertaken. This study reviews costing, pricing and income measurement in…

Study on Stochastic Optimal Electric Power Procurement Strategies with Uncertain Market Prices

Science.gov (United States)

Sakchai, Siripatanakulkhajorn; Saisho, Yuichi; Fujii, Yasumasa; Yamaji, Kenji

The player in deregulated electricity markets can be categorized into three groups of GENCO (Generator Companies), TRNASCO (Transmission Companies), DISCO (Distribution Companies). This research focuses on the role of Distribution Companies, which purchase electricity from market at randomly fluctuating prices, and provide it to their customers at given fixed prices. Therefore Distribution companies have to take the risk stemming from price fluctuation of electricity instead of the customers. This entails the necessity to develop a certain method to make an optimal strategy for electricity procurement. In such a circumstance, this research has the purpose for proposing the mathematical method based on stochastic dynamic programming to evaluate the value of a long-term bilateral contract of electricity trade, and also a project of combination of the bilateral contract and power generation with their own generators for procuring electric power in deregulated market.

Factors affecting seasonal gas prices: Analysis of trends and R and D implications. Final report, November 1990-February 1992

International Nuclear Information System (INIS)

Denhardt, R.C.

1992-02-01

Three economic factors were identified which influence the seasonality of gas prices: fuel switching, storage, and utilization of wellhead deliverability. Also, contract structures will have an influence on the seasonality of natural gas prices. Increases in the utilization of wellhead deliverability tends to increase the seasonality of gas prices. Price-induced fuel switching capability is too small to significantly influence the seasonality of gas prices. If there is adequate deliverability, the cost of interruptible storage, including carry cost, will place a ceiling on the seasonability of gas prices. This cost is about $.70 per MMBtu. If deliverability tightens, then the cost of firm storage or producer shut-ins will place a ceiling on gas prices. The ceiling would range from $1.00 to $1.20 per MMBtu. There is concern about whether the current market structure will provide for a smooth return to full cycle pricing. The current premiums for new contracts are inadequate to achieve this objective

Electricity prices and power derivatives: An affine jump diffusion approach with seasonal volatility and prices

International Nuclear Information System (INIS)

Nomikos, Nikos; Soldatos, Orestes; Tamvakis, Michael

2005-01-01

Deregulation and reforms in the electricity markets over the recent years have led to increasing volatility of electricity prices since prices in the market are now determined by the fundamental rules of supply and demand. The existence of price risk in the market leads to the increasing necessity of hedging using derivatives and the subsequent development of models to price and hedge electricity derivatives. However the non-storable nature of the market implies that ''traditional'' approaches for the pricing and hedging of commodity derivatives based on the theory of storage are not applicable to electricity markets. In this paper we propose a two-factor jump diffusion model with seasonal components in order to capture the systematic pattern in the forward curve and the volatility term structure. Our model is then calibrated for the spot and the financial contracts in the Nord Pool Exchange using Kalman filter techniques. The proposed model has several advantages. First it enables to select the risk neutral measure that best fits the term structure hence capturing the most significant distributional characteristics of both spot and forwards. Second, it explains the seasonal risk premium, and finally it provides a fit for the Volatility Term Structure. The resulting model is very promising, providing a very useful Financial Engineering tool to market participants for Risk Hedging and Derivatives Pricing in the highly volatile Power Markets. (Author)

LAND PRICE MAPPING OF JABODETABEK, INDONESIA

Directory of Open Access Journals (Sweden)

Adisti Madella Elmanisa

2017-03-01

Full Text Available Land provision is one of the biggest challenges for development in urban area. Most of the available urban land will be the object of speculation to be resold at a higher price when the time is right. In Jabodetabek, where the pace of urban development is faster than other parts of Indonesia, the prices of land show an abnormal increase; they seem to rise too fast. This paper discusses the increasing land prices in Jabodetabek area and argues that the increasing land price has encourages the private developer to bank the land in the area. Based on land price survey in Jabodetabek, urban activity is moving to south Jakarta. The highest land prices were found at East Kuningan, Setiabudi, and South Jakarta. By constrast, the lowest prices were observed in Sumur Batu and Cimuning (Bantar Gebang, Bekasi.It can be concluded that the land price increase also triggered land banking practice in Jabodetabek reaching in total approximately 60% of total area of Jakarta.

On the economics of PURPA auctions. [Contracts between utilities and electricity producers in the USA

Energy Technology Data Exchange (ETDEWEB)

Bolle, Friedel (Energiewirtschaftliches Inst. an der Univ. zu Koeln (Germany))

1991-04-01

It is shown that, under certain conditions, Public Utility Regulatory Policies Act (PURPA) auctions in the USA theoretically lead to efficient contracts between utilities and producers of electricity. In contrast to normal auctions bidders compete with (potentially non-linear) revenue functions and with non-price attributes. In practice, there are tremendous difficulties in the evaluation of bids which result from the long duration of contracts and from the necessity to evaluate risks and non-price attributes. (author).

Market fundamentals, competition and natural-gas prices

International Nuclear Information System (INIS)

Hulshof, Daan; Maat, Jan-Pieter van der; Mulder, Machiel

2016-01-01

After the liberalisation of the gas industry, trading hubs have emerged in Europe. Although these hubs appear to be liquid market places fostering gas-to-gas competition, the efficiency of the gas market remains a topic of interest as a fair share of gas is still traded through long-term contracts with prices linked to the oil price while the number of gas suppliers to the European market is limited. In order to assess the efficiency of the gas market, we analyse the day-ahead spot price at the Dutch gas hub over the period 2011–2014. We find that the oil price had a small positive impact on the gas price. Changes in the concentration on the supply side did not affect the movement in gas prices. The availability of gas in storages and the outside temperature negatively influenced the gas price. We also find that the gas price was related to the production of wind electricity. Overall, we conclude that the day-ahead gas prices are predominantly determined by gas-market fundamentals. Policies to further integrate gas markets within Europe may extend this gas-to-gas competition to a larger region. - Highlights: •We analyse the development of the day-ahead spot price at TTF over 2011–2014. •The oil price had a small impact on the gas price, while the coal price had no effect. •Changes in the concentration on the supply side did not affect the gas prices. •The gas prices are predominantly determined by weather and storage availability. •Policies to integrate gas markets foster gas-to-gas competition.

Options for change in the NHS consultant contract.

Science.gov (United States)

Clarke, R W; Gray, C

The lead negotiators for the management and consultant sides in an NHS trust in northern England responded to debate in their trust about consultant contracts by offering to research the attitudes of their peers towards a variety of contract options. The options tested included the current contract; models already examined in the trust and elsewhere, such as time sensitive and mild performance related contracts; and some more radical and speculative possibilities, including consultants franchising their services to the trust. Beyond the predictable conclusion that consultants would prefer no change while managers desired it, a time sensitive contract emerged as having potential for successful negotiation. On the other hand, neither consultants nor managers favoured a strict performance related contract or a fee for service contract. There was a strong similarity of opinion between the two groups on the relative salary values of the options, though the consultants consistently priced these higher than the managers.

Proposal for the award of a contract for the supply of superconducting cables for the LHC low-current insertion (mqm) and wide-aperture insertion (mqy) quadrupoles

CERN Document Server

1999-01-01

This document concerns the award of a contract for the supply of the superconducting cables for the LHC low-current insertion (MQM) and wide-aperture insertion (MQY) quadrupoles. A call for tenders (IT-2631/LHC/LHC) was sent to four firms in four Member States, three firms in Japan and two firms in the USA on 3 June 1999. By the closing date, CERN had received seven tenders. The Finance Committee is invited to agree to the negotiation of a contract with the firm VACUUMSCHMELZE (DE) for the supply of all superconducting cables for the LHC MQM and MQY quadrupoles for a total net price of 3 240 257 euros, subject to revision after 31 December 2000, with an option to procure additional cables representing 10% of the initial quantity for a total net price of 324 026 euros, bringing the total to an amount of 3 564 283 euros, subject to revision after 31 December 2000. At the exchange rate given in the tender, these amounts correspond to 5 192 720 Swiss francs, 519 272 Swiss francs and 5 711 992 Swiss francs respect...

13 CFR 124.511 - How is fair market price determined for an 8(a) contract?

Science.gov (United States)

2010-01-01

... activity must derive the estimate of a current fair market price for a new requirement, or a requirement... take into account prevailing market conditions, commercial prices for similar products or services, or data obtained from any other agency. The analysis must also consider any cost or pricing data that is...

Pricing offshore wind power

International Nuclear Information System (INIS)

Levitt, Andrew C.; Kempton, Willett; Smith, Aaron P.; Musial, Walt; Firestone, Jeremy

2011-01-01

Offshore wind offers a very large clean power resource, but electricity from the first US offshore wind contracts is costlier than current regional wholesale electricity prices. To better understand the factors that drive these costs, we develop a pro-forma cash flow model to calculate two results: the levelized cost of energy, and the breakeven price required for financial viability. We then determine input values based on our analysis of capital markets and of 35 operating and planned projects in Europe, China, and the United States. The model is run for a range of inputs appropriate to US policies, electricity markets, and capital markets to assess how changes in policy incentives, project inputs, and financial structure affect the breakeven price of offshore wind power. The model and documentation are made publicly available. - Highlights: → We calculate the Breakeven Price (BP) required to deploy offshore wind plants. → We determine values for cost drivers and review incentives structures in the US. → We develop 3 scenarios using today's technology but varying in industry experience. → BP differs widely by Cost Scenario; relative policy effectiveness varies by stage. → The low-range BP is below regional market values in the Northeast United States.

Committing to coal and gas: Long-term contracts, regulation, and fuel switching in power generation

Science.gov (United States)

Rice, Michael

Fuel switching in the electricity sector has important economic and environmental consequences. In the United States, the increased supply of gas during the last decade has led to substantial switching in the short term. Fuel switching is constrained, however, by the existing infrastructure. The power generation infrastructure, in turn, represents commitments to specific sources of energy over the long term. This dissertation explores fuel contracts as the link between short-term price response and long-term plant investments. Contracting choices enable power plant investments that are relationship-specific, often regulated, and face uncertainty. Many power plants are subject to both hold-up in investment and cost-of-service regulation. I find that capital bias is robust when considering either irreversibility or hold-up due to the uncertain arrival of an outside option. For sunk capital, the rental rate is inappropriate for determining capital bias. Instead, capital bias depends on the regulated rate of return, discount rate, and depreciation schedule. If policies such as emissions regulations increase fuel-switching flexibility, this can lead to capital bias. Cost-of-service regulation can shorten the duration of a long-term contract. From the firm's perspective, the existing literature provides limited guidance when bargaining and writing contracts for fuel procurement. I develop a stochastic programming framework to optimize long-term contracting decisions under both endogenous and exogenous sources of hold-up risk. These typically include policy changes, price shocks, availability of fuel, and volatility in derived demand. For price risks, the optimal contract duration is the moment when the expected benefits of the contract are just outweighed by the expected opportunity costs of remaining in the contract. I prove that imposing early renegotiation costs decreases contract duration. Finally, I provide an empirical approach to show how coal contracts can limit

Higher-Order Finite Element Solutions of Option Prices

DEFF Research Database (Denmark)

Raahauge, Peter

2004-01-01

Kinks and jumps in the payoff function of option contracts prevent an effectiveimplementation of higher-order numerical approximation methods. Moreover, thederivatives (the greeks) are not easily determined around such singularities, even withstandard lower-order methods. This paper suggests...... for prices as well as for first and second order derivatives(delta and gamma). Unlike similar studies, numerical approximation errors aremeasured both as weighted averages and in the supnorm over a state space includingtime-to-maturities down to a split second.KEYWORDS: Numerical option pricing, Transformed...

The price of oil and the future of Middle East Gas

International Nuclear Information System (INIS)

Zaki Yamani, A.

1997-01-01

Most LNG contracts relate the LNG price received by the supplier at the point of delivery to a relevant oil price. Gas and oil are thus closely connected so that when the price of landed oil decreases so dose the price of delivered LNG. With large fixed transportation and liquefaction costs, accounting for around 85% of the supply cost of delivered LNG in the case of Qatari LNG supplied to japan, you can imagine how large falls in the price paid for delivered LNG would squeeze the net back to the producer back in Qatar. However, low oil price can do some damage to the economics of existing LNG projects in the Middle East. More importantly, persistently low oil prices can prevent new LNG projects from leaving the drawing board-which will stifle the exciting export potential of Middle Eastern gas

Rational Asset Pricing Bubbles Revisited

OpenAIRE

Jan Werner

2012-01-01

Price bubble arises when the price of an asset exceeds the asset's fundamental value, that is, the present value of future dividend payments. The important result of Santos and Woodford (1997) says that price bubbles cannot exist in equilibrium in the standard dynamic asset pricing model with rational agents as long as assets are in strictly positive supply and the present value of total future resources is finite. This paper explores the possibility of asset price bubbles when either one of ...

The price of electricity from private power producers

Energy Technology Data Exchange (ETDEWEB)

Kahn, E.; Milne, A.; Kito, S.

1993-10-01

The long-term wholesale electricity market is becoming increasingly competitive. Bidding for power contracts has become a dominant form of competition in this sector. The prices which emerge from this process have not been documented and compared in a systematic framework. This paper introduces a method to make such comparisons and illustrates it on a small sample of projects. This results show a wide range of prices for what is essentially the same technology, gas-fired combined cycle generation. The price range seems greater than what could be explained by transmission cost differences between high and low cost regions. For the smaller sample of coal-fired projects, price variation is substantially less. Further data collection and analysis should be able to help isolate more clearly what market or cost factors are responsible for the observed variation.

48 CFR 1352.209-71 - Limitation of future contracting.

Science.gov (United States)

2010-10-01

... computer software; and may appear in cost and pricing data or involve classified information. (iv) “System... subcontractor, for the duration of the initial production contract plus [insert a specific period of time or an...

Ensuring Reliable Natural Gas-Fired Generation with Fuel Contracts and Storage - DOE/NETL-2017/1816

Energy Technology Data Exchange (ETDEWEB)

Myles, Paul T. [National Energy Technology Lab. (NETL), Albany, OR (United States); Labarbara, Kirk A. [National Energy Technology Lab. (NETL), Albany, OR (United States); Logan, Cecilia Elise [National Energy Technology Lab. (NETL), Albany, OR (United States)

2017-11-17

This report finds that natural gas-fired power plants purchase fuel both on the spot market and through firm supply contracts; there do not appear to be clear drivers propelling power plants toward one or the other type. Most natural gas-fired power generators are located near major natural gas transmission pipelines, and most natural gas contracts are currently procured on the spot market. Although there is some regional variation in the type of contract used, a strong regional pattern does not emerge. Whether gas prices are higher with spot or firm contracts varies by both region and year. Natural gas prices that push the generators higher in the supply curve would make them less likely to dispatch. Most of the natural gas generators discussed in this report would be unlikely to enter firm contracts if the agreed price would decrease their dispatch frequency. The price points at which these generators would be unlikely to enter a firm contract depends upon the region that the generator is in, and how dependent that region is on natural gas. The Electric Reliability Council of Texas (ERCOT) is more dependent on natural gas than either Eastern Interconnection or Western Interconnection. This report shows that above-ground storage is prohibitively expensive with respect to providing storage for an extended operational fuel reserve comparable to the amount of on-site fuel storage used for coal-fired plants. Further, both pressurized and atmospheric tanks require a significant amount of land for storage, even to support one day’s operation at full output. Underground storage offers the only viable option for 30-day operational storage of natural gas, and that is limited by the location of suitable geologic formations and depleted fields.

Market price of risk implied by Asian-style electricity options and futures

International Nuclear Information System (INIS)

Weron, Rafal

2008-01-01

In this paper we propose a jump-diffusion type model which recovers the main characteristics of electricity spot price dynamics in the Nordic market, including seasonality, mean-reversion and spiky behavior. We show how the calibration of the market price of risk to actively traded futures contracts allows for efficient valuation of Nord Pool's Asian-style options written on the spot electricity price. Furthermore, we study the evolution of the market price of risk (and the risk premium) over a three year time period and compare the obtained results with those reported in the literature. (author)

Market price of risk implied by Asian-style electricity options and futures

Energy Technology Data Exchange (ETDEWEB)

Weron, Rafal [Hugo Steinhaus Center for Stochastic Methods, Institute of Mathematics and Computer Science, Wroclaw University of Technology, 50-370 Wroclaw (Poland)

2008-05-15

In this paper we propose a jump-diffusion type model which recovers the main characteristics of electricity spot price dynamics in the Nordic market, including seasonality, mean-reversion and spiky behavior. We show how the calibration of the market price of risk to actively traded futures contracts allows for efficient valuation of Nord Pool's Asian-style options written on the spot electricity price. Furthermore, we study the evolution of the market price of risk (and the risk premium) over a three year time period and compare the obtained results with those reported in the literature. (author)

EOQ model for perishable products with price-dependent demand, pre and post discounted selling price

Science.gov (United States)

Santhi, G.; Karthikeyan, K.

2017-11-01

In this article we introduce an economic order quantity model for perishable products like vegetables, fruits, milk, flowers, meat, etc.,with price-dependent demand, pre and post discounted selling price. Here we consider the demand is depending on selling price and deterioration rate is constant. Here we developed mathematical model to determine optimal discounton the unit selling price to maximize total profit. Numerical examples are given for illustrated.

A dispatch based pricing model for the New Zealand electricity market

International Nuclear Information System (INIS)

Ring, B.J.; Read, E.G.

1996-01-01

Work undertaken for the New Zealand transmission grid is described. Prices derived from an observed system dispatch can be used in the short-run coordination of a competitive wholesale electricity market. These prices vary across space and time, reflecting differences in marginal costs and changing demand. Markets for emergency reserve generating capacity can be integrated with a market for power. Used in conjunction with longer term contracts, such short-run prices have the potential to allow competitive power system operation without significant loss of coordination efficiencies. 2 figs., 26 refs

Investment risk aspects of new gas contracts in the UKCS

International Nuclear Information System (INIS)

Kemp, A.G.; Stephen, L.

1996-01-01

The market faced by gas producers in the UKCS has changed considerably since 1990. Producers contemplating the development of new fields are today highly unlikely to attain life-of-field depletion contracts for their gas. They may not even be able to negotiate long-term take or pay contracts for a high proportion of their reserves. Today's producers face not only volume risk, in the sense that they may be unable to attain contracts for all their reserves, but they are exposed to price risks to a greater extent than they have been in the past. The aim of this study is to consider the degree of economic risk faced by gas producers in this new market situation with emphasis on volume and price risks. Emphasis is given to the position of an investor contemplating the development of a new field in circumstances where firm contract(s) are available for only some of the potential output of the field, and assessments of the chances of obtaining further contracts have to be made and set alongside the effects of simply selling gas on the spot market. The emphasis is on elucidating the risk:reward situation facing investors in such situations. The underlying objective of the investor is taken to be the maximisation of his returns (expressed in terms of net present value (NPV)). Attention in the risk analysis is given to upside potential and downside risks. (author)

41 CFR 102-73.125 - How much of a price preference must Federal agencies give when acquiring leased space using the...

Science.gov (United States)

2010-07-01

... permits tradeoffs among price and non-price factors, the Government will give a price evaluation... is offered or remains in the competition, the Government will give a 2.5 percent price preference to... 41 Public Contracts and Property Management 3 2010-07-01 2010-07-01 false How much of a price...

Transactional price of an expected child and its application in birth control.

Science.gov (United States)

Li, X

1993-01-01

The theoretical presentation of the impact of the transactional price of an expected child (TPEC) on birth control led to the conclusion that successful birth control was a combination of birth utility theory and TPEC theory. In a hypothetical market, the assumption can be made that an expected price can be attached to a desired child or a transactional price can be attached for giving up the reproductive right to have an excess child. A consumer equilibrium model can characterize the changes in financial resources necessary in deciding on an appropriate number of children. In a general equilibrium model, couples would have to be compensated a certain amount as an inducement to forgo the right to have a second child. Prices of children can be determined by a distributional curve of this transactional price of expected excess children and the estimated marginal price for couples with two children. Under circumstances of limited resources, it would be cheaper to buy some couple's rights to forgo a child, and this price would vary with parity. The exact transactional price of each child by parity by each couple could be theoretically determined, if all couples told the truth about desired number of children. However, the complication is that this condition may not be possible, and couples may charge more for forgoing the right to a subsequent child that what they would actually accept. Also, the seller could ask one price and then charge more. A compromise would be to set prices only for lower parities and to set prices subject to the total funds available to the buyer. Very low prices would also decrease the effectiveness of birth control. The government could be a buyer or seller. Taxing couples for additional children would make the government a seller. When the government is the buyer, couples would be compensated for not having an additional child. Another possibility is a reward for having only a certain number of children and a tax for excess children, which

European CO2 prices and carbon capture investments

International Nuclear Information System (INIS)

Abadie, Luis M.; Chamorro, Jose M.

2008-01-01

We assess the option to install a carbon capture and storage (CCS) unit in a coal-fired power plant operating in a carbon-constrained environment. We consider two sources of risk, namely the price of emission allowance and the price of the electricity output. First we analyse the performance of the EU market for CO 2 emission allowances. Specifically, we focus on the contracts maturing in the Kyoto Protocol's first commitment period (2008 to 2012) and calibrate the underlying parameters of the allowance price process. Then we refer to the Spanish wholesale electricity market and calibrate the parameters of the electricity price process. We use a two-dimensional binomial lattice to derive the optimal investment rule. In particular, we obtain the trigger allowance prices above which it is optimal to install the capture unit immediately. We further analyse the effect of changes in several variables on these critical prices, among them allowance price volatility and a hypothetical government subsidy. We conclude that, at current permit prices, immediate installation does not seem justified from a financial point of view. This need not be the case, though, if carbon market parameters change dramatically, carbon capture technology undergoes significant improvements, and/or a specific governmental policy to promote these units is adopted. (author)