Optimal Hedging and Carryover Storage Value
Publication: Journal of Water Resources Planning and Management
Volume 130, Issue 1
Abstract
Properties of optimal hedging for water supply releases from reservoirs are developed and discussed. The fundamental decision of how much water to release for beneficial use and retain for potential future use is examined analytically. Explicit correspondence is established between optimal hedging and the value of carryover storage. This more analytical view of hedging rules is useful for better understanding optimal hedging and simplifying numerical optimization of hedging operating rules. The derivations suggest the frequent optimality or near-optimality of two-point hedging policies for water supply operations.
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Information
Published In
Journal of Water Resources Planning and Management
Volume 130 • Issue 1 • January 2004
Pages: 83 - 87
Copyright
Copyright © 2004 American Society of Civil Engineers.
History
Received: Apr 19, 2002
Accepted: Jan 2, 2003
Published online: Dec 15, 2003
Published in print: Jan 2004
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