Skip to main content
U.S. Department of Energy
Office of Scientific and Technical Information

Electric Utility Rate Design Study: costing for peak-load pricing, Topic 4

Technical Report ·
OSTI ID:5285285

The report on Topic 4, Costing for Peak-Load Pricing, consists of six main sections: Introduction, Impact of Costing for Peak-Load Pricing (PLP) on Revenue Requirements, the Costing Process for Peak-Load Pricing (PLP), Companies Selected and Their Characteristics, Methods of Costing for Peak-Load Pricing (PLP), and Computer Applications. The Introduction deals with a brief historical background of pricing for the different types of load that have been responsible for the growth of the industry and their possible adaptation to peak-load pricing concepts. The section on the Impact of Costing for PLP on Revenue Requirements consists of an outline of the issues of meeting the utility's revenue requirements regardless of the price form. The section on the Costing Process for PLP discusses the five-step process required for costing regardless of the methodology, namely: selection of rating periods; functionalization; classification; allocation of costs to rating periods; and allocation of costs to classes. The next section of the report is a description of the companies selected for study and their characteristics, including proposed rating periods and operating factors. The section on Methods of Costing for PLP deals with the four costing methodologies explored by Ebasco, namely: fully allocated historical costs; fully allocated costs for a projected test period; short-run marginal costing; and long-run marginal costing. Finally, the section on Computer Application discusses the computer technology developed by Ebasco for use in conducting the analytical work associated with the different costing techniques.

Research Organization:
Ebasco Services, Inc., New York (USA); Electric Power Research Inst., Palo Alto, Calif. (USA)
OSTI ID:
5285285
Report Number(s):
NP-22516
Country of Publication:
United States
Language:
English