Ending block rates won't cut small user's costs. [Pros and cons of changing industrial rate structures]

Journal Article · Mon Feb 14 04:00:00 EST 1977 · Energy User News; (United States)

OSTI ID:7313511

Jacob, R J

Consumer efforts to make large users of electricity pay higher rates will not result in lower rates for small users because the costs of administering the policy and the loss of employment as investment capital dwindles will more than offset any opportunity for income redistribution. Also, since a major portion of the production costs of consumer goods goes for electricity, increases in costs will be passed on to the consumer products to the advantage of foreign goods. Contrary to popular belief, industry has had a confrontation relationship with utilities which has worked to give all consumers in a given area more reasonable rates. Elimination of local block rates could cause industries to relocate. Industry, which has a better record than the average citizen for serious conservation effort, could accelerate its progress with tax incentives that would reward conservation breakthroughs. To the extent that efforts to restructure rates are political, industry needs to speak up and make sure the small users understand the long-range implications of their actions. (DCK)

• Research Organization: Dayco Corp., Dayton, OH
• OSTI ID: 7313511
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 2:6; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

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29 ENERGY PLANNING, POLICY, AND ECONOMY
290200* -- Energy Planning & Policy-- Economics & Sociology
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