A rate design to increase efficiency and reduce revenue requirements
Journal Article
·
· Electricity Journal
One decoupling approach, a Straight Fixed Variable (SFV) rate design, is a rational way to recover fixed and variable costs because it aligns pricing with variable and fixed cost causation, thereby removing the utility's profit sensitivity to reduced sales. The problem with SFV is that it reduces the variable charge to short-term variable cost, leading to overconsumption. Revenue-neutral energy efficiency ''feebates'' combining fees and rebates offer an economic incentive for consumer energy efficiency. (author)
- OSTI ID:
- 21195806
- Journal Information:
- Electricity Journal, Vol. 22, Issue 4; Other Information: Elsevier Ltd. All rights reserved; ISSN 1040-6190
- Country of Publication:
- United States
- Language:
- English
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