An Economic Analysis of the Melissa Miller

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Specifications	An Economic Analysis of the Melissa Miller
Business section

7 Figure 2. Changing to imperial gallons affects only the price per unit, not total outlays. Change from U.S. Gallons to Impe

Specifications	An Economic Analysis of the Melissa Miller
Outline	Main Table of Contents L&R Committee Interim Report Appendix B. An Economic Analysis of the California Energy Commission Staff s Fuel Delivery Temperature Study Introduction and summary Alternative systems for measuring retail motor fuel transactions Quantity and price units Conversion between alternative quantity units Quantity units defined by temperature “Net” and “gross” systems of measurement Net vs. gross systems in the “hot fuel” allegations Net vs. gross systems in the CEC Staff Report “Net” and “gross” systems are equally valid alternatives The inconsistency of the “hot fuel” activists Month-by-month illustration of how competition makes the adjustment No “excess federal and state motor fuel taxes” are collected The “hot fuel rip-off” controversy The allegations themselves The “hot fuel” allegations are unproven conjectures The CEC Staff Report and the “hot fuel” allegations The CEC Staff Report’s “increased price transparency benefit” Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The CEC Staff Report’s “new reference temperature option” The particular reference temperature selected makes no difference The “Hawaii example” and the “hot fuel” activists What actually happened in Hawaii Hawaii and the “New Reference Temperature Option” for California The adoption of automatic temperature compensation by Canadian retailers The CEC Staff Report’s underestimate of the true cost of the proposed ATC Retrofit How competition adjusts retail prices to account for seasonal temperature variation. Month-by-month illustration of how competition makes the adjustment Monte Carlo simulation of repeated retail purchases in the context of cross-sectional temperature variations. Resulting evidence on the effect of cross-sectional temperature variation. Where are the supposed “hot fuel rip-off” profits? Concluding remarks
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Content	7 Figure 2. Changing to imperial gallons affects only the price per unit, not total outlays. Change from U.S. Gallons to Imperial Gallons Unit of measurement for quantity sold Size of quantity unit (cubic inches) Total quantity units available for sale Dealer s target total sales revenue Resulting dealer target street price per unit Total cost of 100 US gallons (23,100 cubic inches) Before U.S. Gallon 231.00 8,000.0 $3.000 $300.00 After Imperial Gallon 277.40 6,661.8 $24,000 $3.603 $300.00 Change 20.09% 20.09% 0.00% Quantity units defined by temperature Next, I extend these examples to deal with changes in fuel volume induced by changes in temperature. As is well-known to anyone familiar with the “hot fuel” allegations, the variation in the volumes occupied by gasoline and diesel fuel due to temperature variation has motivated the so-called net gallon, which (in the case of gasoline) occupies 231 cubic inches only at 60̊ F. At temperatures in excess of 60̊ F., a net gallon occupies more than 231 cubic inches, while at temperatures below 60̊ F., a net gallon is smaller than 231 cubic inches. So, in contrast to a gross gallon – which always is 231 cubic inches, regardless of the fuel’s temperature – the volume (in cubic inches) of a net gallon of fuel varies directly with temperature. But the key insight is that any “gallon” defined in terms of a reference temperature – such as the net gallon defined at 60̊ F. – corresponds to a known number of cubic inches at any other temperature, owing to the linear relationship between the temperature of a net gallon of motor fuel and its volume in cubic inches. This is illustrated in Figure 3, which shows the number of cubic inches occupied by a net gallon at temperatures from 30̊ to 100̊ F. Because of this simple linear relationship, at any particular temperature there is one – and only one – “size” of a net gallon of gasoline or diesel fuel, and knowing the temperature of the fuel is the same as knowing the size in cubic inches of a net gallon of that fuel.
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Following Datasheets	10-LR-AppC-09-Pub16-FINAL (85 pages) 10-LR-AppE-09-Pub16-FINAL (12 pages) 10-LR-AppF-09-Pub16-FINAL (8 pages) 10-ntep-09-annual-final (16 pages) 10-ntep-09-pub15-final (28 pages) 10-ntep-10-pub15-final (8 pages) 10-ntep-11-pub15-final (12 pages) 10-ntep-2010-annual-final (16 pages) 10-ntep-2011-annual-final (18 pages) 10-ntep-app-a-09-annual-final (20 pages)
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