Rate design for qualifying facilities
Rate design can be used to accomplish two desirable results: to minimize the uncertainty facing both the ratepayer and the cogenerator and to encourage efficient operation of the qualifying facility (QF) in terms of when its power is cheaper to ratepayers than the power that is being produced by the utility. Generally, since purchases from QFs are made according to the terms of a multi-year contract, the resolution of the rate level and rate design questions in any particular case will have a longevity that exceeds the life of most retail rates that are adopted. The author focuses on the two key topics of the determination of the appropriate rate level and of the preferred rate design. Examples of avoided-cost calculations and resulting rates conclude the paper.
- Research Organization:
- Ernst and Whinney, Washington, DC
- OSTI ID:
- 5981505
- Report Number(s):
- CONF-850301-
- Journal Information:
- Energy Technol. (Wash., D.C.); (United States), Vol. 12; Conference: 12. annual energy technology conference and exposition, Washington, DC, USA, 25 Mar 1985
- Country of Publication:
- United States
- Language:
- English
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29 ENERGY PLANNING
POLICY AND ECONOMY
COGENERATION
ECONOMICS
ELECTRIC UTILITIES
RATE STRUCTURE
CHARGES
CONTRACTS
PRICES
SELLBACK
DEUS
ENERGY SYSTEMS
POWER GENERATION
PUBLIC UTILITIES
STEAM GENERATION
200105* - Fossil-Fueled Power Plants- Heat Utilization
290800 - Energy Planning & Policy- Heat Utilization- (1980-)
296000 - Energy Planning & Policy- Electric Power