Electric Utility Rate Design Study: ratemaking, Topic 5

Technical Report · Fri Feb 04 04:00:00 EST 1977

OSTI ID:5194892

Koger, R K

The purpose of this report is to analyze the theoretical and practical aspects of rate forms as means of achieving various ratemaking objectives. Special attention is given to an evaluation of peak-load pricing (PLP) as a means of achieving selected ratemaking objectives. PLP used with the following is analyzed: (1) different metering systems; (2) consumption control devices; (3) time-of-use rate forms, such as diurnal and seasonal rates; (4) use of marginal cost instead of average embedded cost as a basis for the setting of rates. Existing rate forms are selected for analysis. Conclusions drawn from the analysis of ratemaking objectives are summarized by rate form and metering arrangements. The report takes notice of the practicality of and the potential constraints to implementation of PLP. The potential constraints analyzed include the following: revenues, cash flow, regulatory factors, legal considerations, operational concerns, billing reliability, customer considerations, and fuel clauses. (MCW)

• Research Organization: Electric Power Research Inst., Palo Alto, Calif. (USA)
• OSTI ID: 5194892
• Report Number(s): NP-22527
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CHARGES
CONTROL EQUIPMENT
ECONOMICS
ELECTRIC POWER
ELECTRIC UTILITIES
IMPLEMENTATION
LEGAL ASPECTS
MARGINAL-COST PRICING
MEASURING METHODS
PEAK-LOAD PRICING
POWER
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS