Value of service concepts in ratemaking

Conference · Sat Mar 01 04:00:00 EST 1986 · Energy Technol. (Wash., D.C.); (United States)

OSTI ID:5590970

Walters, W C

Traditionally, electric utility customers have enjoyed a high level of service reliability determined by standard industry criteria such as loss of load probability and reserve margins. For such a level of reliability embedded in electric utility service they pay rates deemed fair and reasonable by the regulatory agency. These criteria lack one crucial element in an era of relatively high energy prices - a link to the customer's desire to choose not to pay for reliability. Many utilities offer discounted curtailable and interruptible rate options so that customers with lower requirements for reliable service can reduce their energy costs. However, while there are some rate options which link rates and service level, overall planning criteria do not incorporate customer valuation for reliability into the system expansion plan. PG and E began a Value of Service survey in 1983. The purpose of the research was to gather information on customer preferences. The survey research objectives, methodology, and results are described. How this information may be used in ratemaking is discussed. 1 figure, 2 tables.

• Research Organization: Pacific Gas and Electric Co., San Francisco, CA
• OSTI ID: 5590970
• Report Number(s): CONF-860303-
• Conference Information: Journal Name: Energy Technol. (Wash., D.C.); (United States) Journal Volume: 13
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
ATTITUDES
COST BENEFIT ANALYSIS
ELECTRIC UTILITIES
LOAD MANAGEMENT
MANAGEMENT
PLANNING
PUBLIC OPINION
PUBLIC UTILITIES
RESEARCH PROGRAMS
SURVEYS