Lifeline and incremental cost residential electric rates
- Univ. of Pittsburgh, Johnstown, PA
Electric rate increases to cover costs of service for utilities and promote energy conservation by consumers can be made politically acceptable if consumers feel rates are more equitable. A subsidized lifeline with incremental cost pricing (SL-ICP) rate structure is proposed to subsidize low-income users with funds drawn from residential rates and general tax revenues. Residential rate schedules are divided into three types of service: (1) without an electric water heater, (2) with an electric water heater, and (3) an all-electric home. Each group is then divided into a subsidized or lifeline rate, an intermediate cost-of-service rate, and a higher rate for cost of providing above average service. Further subsidization by general welfare or fuel stamp programs can care for those unable to pay even the lifeline amount. The burden of subsidization falls primarily on high-usage customers, who are generally in the higher income group. Changes in consumption are expected to result in an increase for the subsidized group (thus putting part of their use in the intermediate rate) and a decrease for the high users. Peak-load pricing to supplement SL-ICP can provide better load management and save costs of expanding plant capacity. (DCK)
- OSTI ID:
- 7121283
- Journal Information:
- Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 99:4; ISSN PUFNA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
296000* -- Energy Planning & Policy-- Electric Power
298000 -- Energy Planning & Policy-- Consumption & Utilization
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101 -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
APPLIANCES
BEHAVIOR
CHARGES
CONSUMPTION RATES
COST
DEMAND FACTORS
ECONOMIC IMPACT
ECONOMICS
ELECTRIC APPLIANCES
ELECTRIC POWER
ENERGY CONSERVATION
EQUIPMENT
FINANCIAL INCENTIVES
GAS APPLIANCES
HEATERS
PEAK-LOAD PRICING
POWER
PUBLIC RELATIONS
RESIDENTIAL SECTOR
SOCIAL IMPACT
SOCIO-ECONOMIC FACTORS
TAXES
WATER HEATERS