Rate structure alternatives for electricity

Journal Article · Thu Jan 20 04:00:00 EST 1977 · Public Util. Fortn.; (United States)

OSTI ID:7317923

Mann, P C

Electricity rate structures, which cannot be simply allocated on the basis of energy costs and metered consumption, result from a number of considerations involving subsidization, conflicts with local development needs, and the administrative problems of measuring both economic and non-economic factors. Efficiency, for example, can introduce constraints on facility expansion and efforts to achieve equity. Major rate structure alternatives are (1) the declining block, with lower rates for each successive block consumed; (2) the inverted block, with higher rates for successive blocks; (3) demand, based on the maximum load the user imposes on the system; and (4) peakload based on penalizing peak use and encouraging users to alter their consumption patterns. Other issues that must be considered are the value of service pricing, with cost allocations based on user differences in capacity and willingness to pay the costs, price elasticity of demand that reflects the consumer's ability to adjust use or make substitutes, and load-management technology that uses meters to measure both kilowatt-hour use and maximum kilowatt demand. (DCK)

• Research Organization: West Virginia Univ., Morgantown
• OSTI ID: 7317923
• Journal Information: Public Util. Fortn.; (United States), Journal Name: Public Util. Fortn.; (United States) Vol. 99:2; ISSN PUFNA
• Country of Publication: United States
• Language: English

Related Subjects

20 FOSSIL-FUELED POWER PLANTS
200106 -- Fossil-Fueled Power Plants-- Economics
29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
CHARGES
CONSUMPTION RATES
COST
DEMAND FACTORS
ECONOMIC ELASTICITY
ECONOMICS
EFFICIENCY
ELECTRIC POWER
ENGINEERING
EQUIPMENT
LOAD MANAGEMENT
MANAGEMENT
MEASURING METHODS
PEAK-LOAD PRICING
POWER
PUBLIC UTILITIES
SOCIO-ECONOMIC FACTORS