Electric Utility Rate Design Study: a comparison of rate-design alternatives developed by Ebasco Services and National Economic Research Associates for the Virginia Electric and Power Company
This report analyzes time-differentiated rates prepared for Virginia Electric and Power Company (VEPCO) to identify major causes of differences in costs and rates developed by Ebasco Services, Inc. and National Economic Research Associates (NERA). In general, these differences can be attributed to one of three causes. First, some differences reflect discrepancies between the data used by Ebasco and by NERA. A second cause of differences between the costs and rates derived from the VEPCO study is the application of judgment. Finally, the rate-design procedures used by the two consultants are inherently different in some important ways. The purpose of this report is to specify the differences in results that are due to differences in the rate-design procedures. The reader is warned of four important limits on the scope of this report: (1) this effort is not extensive enough to provide a complete reconciliation of the Ebasco and NERA methodologies; (2) normative statements about which methodology is correct or preferable are avoided because the objective is to provide a common framework for understanding key differences and important issues; (3) while in may instances data are presented for the entire Virginia Electric and Power Company, the residential service class is treated in greater detail than other service classes; and (4) although other methods were applied by Ebasco, only NERA's time-differentiated marginal-cost study is contrasted with Ebasco's Period II time-differentiated accounting-cost study.
- Research Organization:
- Temple, Barker and Sloane, Inc., Lexington, MA (USA)
- OSTI ID:
- 6474686
- Report Number(s):
- NP-25385
- Country of Publication:
- United States
- Language:
- English
Similar Records
Electric Utility Rate Design Study: ratemaking, Topic 5. Illustrative rates for the Virginia Electric and Power Company
Electric Utility Rate Design Study: comments on Ebasco Service's approach to peak-load pricing