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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, Journal Name: Electricity Journal Journal Issue: 4 Vol. 22; ISSN ELEJE4; ISSN 1040-6190
Country of Publication:
United States
Language:
English

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