Fall of declining blocks: PURPA spurs rate-structure victories in nine states

Journal Article · Sat Aug 01 04:00:00 EDT 1981 · Power Line; (United States)

OSTI ID:5556480

Morgan, R E

The Public Utility Regulatory Policies Act (PURPA) of 1978 is credited with promoting state rate structure reforms that abolish the declining block rate in favor of flat and inverted rates that encourage conservation. Some states have also added lifeline and other rate schemes to aid small or low-income users. Rate reformers in Montana are turning to marginal cost or long-run incremental cost structures, using an inverse elasticity principle. Washington utilities are setting baseline rates, with higher rates for successive blocks for large users. Some regulators, however, have boosted customer charges after eliminated declining block rates or used ineffective voluntary schemes, but the overall effect of PURPA has been positive. (DCK)

• OSTI ID: 5556480
• Journal Information: Power Line; (United States), Journal Name: Power Line; (United States) Vol. 7:1; ISSN POLID
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
CONSUMER PROTECTION
ECONOMIC IMPACT
ELECTRIC UTILITIES
ENERGY CONSERVATION
LAWS
NATIONAL ENERGY ACT
PUBLIC UTILITIES
PUBLIC UTILITY REGULATORY POLICIES ACT
RATE STRUCTURE