Decision Tree
Oglethorpe Power Corporation Decides about Investing in a Major Transmission System
A D A M BORISON
Applied Decision Analysis. Inc. 27W Sand Hill Road Mcnio Park. California 94025
Oglethorpe Power Corporation (OPC) provides wholesale power to consumer-owned distribution cooperatives in Georgia. Late in 1990, OPC managers learned that Florida Power Corporation wanted to expand its connections to Georgia with another transmission line. To decide whether to build this line, OPC worked with Applied Decision Analysis, Inc. to conduct a comprehensive decision analysis in less than two weeks. The results of the analysis helped persuade OPC to shift from a joint venture strategy with Georgia Power to an independent strategy of direct negotiations with Florida Power. These negotiations would serve as a first step towards building the transmission line, and would keep other options open as information regarding the competitive situation was gathered.
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n recent years, the wholesale electric gia, has grown with large nuclear and coalpower market in the Southeastern fired plants coming on line. The result is United States has become very active. Flor- substantial power flows from Georgia and ida 's population and power needs bave nearby states into Florida (Figure 1) [Regrown faster than the state 's power genersource Data International 1990]. ation capacity. At the same time, tbe availOgletborpe Power Corporation (OPC) is ability of surplus power in southeastern a generation and transmission cooperative states other tban Florida, including Georthat provides wholesale power to 39 conCiipvri>;hi c IW^, Instilute fur OfVMliani Rt '-.-jrch jnd Ihf MdiiJBi 'iifnt StiiTiits linMl ;in2/9S/2=iO2/On25S01 25 This pflpfr wiis rt 'ft 'reod Ill-CISION ANALYSIS—AI 'PLICATIONS INDUSTRItS —HLEtTRlC
INTERFACES 25: 2 March-April 1995 (pp. 25-36)
BORISON in Georgia and Florida. Late in 1990, bowever, OPC management learned tbat Florida Power Corporation (FPC) wanted to
A D A M BORISON
Applied Decision Analysis. Inc. 27W Sand Hill Road Mcnio Park. California 94025
Oglethorpe Power Corporation (OPC) provides wholesale power to consumer-owned distribution cooperatives in Georgia. Late in 1990, OPC managers learned that Florida Power Corporation wanted to expand its connections to Georgia with another transmission line. To decide whether to build this line, OPC worked with Applied Decision Analysis, Inc. to conduct a comprehensive decision analysis in less than two weeks. The results of the analysis helped persuade OPC to shift from a joint venture strategy with Georgia Power to an independent strategy of direct negotiations with Florida Power. These negotiations would serve as a first step towards building the transmission line, and would keep other options open as information regarding the competitive situation was gathered.
I
n recent years, the wholesale electric gia, has grown with large nuclear and coalpower market in the Southeastern fired plants coming on line. The result is United States has become very active. Flor- substantial power flows from Georgia and ida 's population and power needs bave nearby states into Florida (Figure 1) [Regrown faster than the state 's power genersource Data International 1990]. ation capacity. At the same time, tbe availOgletborpe Power Corporation (OPC) is ability of surplus power in southeastern a generation and transmission cooperative states other tban Florida, including Georthat provides wholesale power to 39 conCiipvri>;hi c IW^, Instilute fur OfVMliani Rt '-.-jrch jnd Ihf MdiiJBi 'iifnt StiiTiits linMl ;in2/9S/2=iO2/On25S01 25 This pflpfr wiis rt 'ft 'reod Ill-CISION ANALYSIS—AI 'PLICATIONS INDUSTRItS —HLEtTRlC
INTERFACES 25: 2 March-April 1995 (pp. 25-36)
BORISON in Georgia and Florida. Late in 1990, bowever, OPC management learned tbat Florida Power Corporation (FPC) wanted to
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