Electric Utility Rate Design Study: costing for peak-load pricing, Topic 4. Results for Virginia Electric and Power Company

Technical Report · Mon Jun 06 00:00:00 EDT 1977

OSTI ID:5165490

The objective of this report is to explain and demonstrate the various methods of cost allocations that were applied to the Virginia Electric and Power Company (VEPCO). The cost allocation methods and application include two studies using embedded or average costs and two studies using marginal concepts. Each of the embedded cost of service studies covers a different time period or test year. The first is historical (1974) and the second is forward looking (1976). The concepts and applications of these studies are nearly identical--only the input data varies. Four methods of assigning production fixed costs for the embedded studies for VEPCO were applied; results show that, regardless of which method is used, the results in terms of rate of return do not differ significantly. In general, long-run marginal costs for VEPCO will probably rise because of addition of 3744 MW of nuclear and 1920 MW of pumped-storage generation. Short-run marginal cost studies have not been completed. (MCW)

• Research Organization: Ebasco Services, Inc., New York (USA); Electric Power Research Inst., Palo Alto, Calif. (USA)
• OSTI ID: 5165490
• Report Number(s): NP-22522
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING
POLICY AND ECONOMY
ELECTRIC POWER
CHARGES
PEAK-LOAD PRICING
ELECTRIC UTILITIES
COST BENEFIT ANALYSIS
ALLOCATIONS
CONSTRUCTION
COST
DATA COMPILATION
ECONOMICS
FORECASTING
HYDROELECTRIC POWER PLANTS
MARGINAL-COST PRICING
NUCLEAR POWER PLANTS
PLANNING
POWER GENERATION
PUMPED STORAGE POWER PLANTS
RATE STRUCTURE
VIRGINIA
NORTH AMERICA
NUCLEAR FACILITIES
POWER
POWER PLANTS
PUBLIC UTILITIES
THERMAL POWER PLANTS
USA
296000* - Energy Planning & Policy- Electric Power