Electric Utility Rate Design Study: ratemaking, Topic 5. Illustrative rates for the Virginia Electric and Power Company

Technical Report · Mon Jun 06 04:00:00 EDT 1977

OSTI ID:5231243

These illustrative rates are based on the time-differentiated marginal costs of VEPCO (as presented in the marginal cost study for VEPCO submitted under Topic 4 by NERA) and are designed to approximately produce current Commission approved class revenues. The methods employed in developing these rates are based on the ideas expressed in NERA's Topic 5 (ratemaking) report. They illustrate how rates can be developed, which while being patterned on marginally determined costs, can be modified to prevailing regulatory precepts such as producing ''just and reasonable revenues,'' the constraints imposed by metering capability, and the need for continuity and understandability in ratemaking. The task behind the selection of class revenue targets and the concepts behind the particular rate structure design chosen for each class are outlined. In general, the ideas employed herein are those outlined in Topic 5 report, tailored to the specifics of the VEPCO situation. Attachment A contains the illustrative tariff sheets for each class.

• Research Organization: National Economic Research Associates, New York (USA); Electric Power Research Inst., Palo Alto, Calif. (USA)
• OSTI ID: 5231243
• Report Number(s): NP-22532
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CHARGES
COST
DEMAND FACTORS
DESIGN
ECONOMICS
ELECTRIC POWER
ELECTRIC UTILITIES
INCOME
MARGINAL-COST PRICING
MODIFICATIONS
NORTH AMERICA
POWER
PUBLIC UTILITIES
RATE STRUCTURE
REGULATIONS
TAXES
USA
USES
VIRGINIA