Marginal cost based pricing of cogenerated district utilities

Conference · Thu Aug 01 04:00:00 EDT 1996

OSTI ID:269666

Smithers, J; Hisey, D ^[1]

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1. Univ. of California, Los Angeles, CA (United States)

The large variability of inputs of fuels and materials, and outputs of thermal and electrical energy for a large university`s cogeneration facility make it difficult to identify consistent utility cost components and develop corresponding energy rates for campus district utility customers. Add to this a time-of-day and seasonal pricing structure for supplemental electricity purchased from the local utility company, and the development of representative campus energy rates becomes complex and dynamic. By basing (cogenerated) utility rates for each energy form on the marginal cost of producing it, the total cost impact of producing the energy is accounted for, utility rates are stabilized, and the operator is able to provide district energy customers competitive rates under a relatively simple rate structure. This paper presents the methods and considerations involved in UCLA`s development of marginal cost based pricing of cogenerated district utilities, the incorporation of this pricing into campus utility rates beginning with chilled water, and an analysis of how some of these rates compare with those of other universities with district energy systems.

• OSTI ID: 269666
• Report Number(s): CONF-960213--
• Country of Publication: United States
• Language: English

Related Subjects

32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
COGENERATION
DISTRICT COOLING
EDUCATIONAL FACILITIES
ELECTRIC POWER
MARGINAL-COST PRICING
OPERATING COST
POWER GENERATION
RATE STRUCTURE
TOTAL ENERGY SYSTEMS