Optimal Policy for Reservoir Operation

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Abstract
A method is described for finding the operation that provides the optimal combination of firm on-peak energy, dump energy and firm water supply from a single multi-purpose reservoir which also provides flood and water quality control. Dynamic programming with a physical recursive equation and variation of parameters are used to find the physical production possibility function which shows the transformation between providing firm on-peak energy and firm water supply. From computer results annual equivalent revenue and optimum operating policy are determined. The model is applied to Folsom Reservoir and Power Plant on the American River in Northern Calfornia for representative purposes.

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