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U.S. Department of Energy
Office of Scientific and Technical Information

Electric rate concepts and structures. Final report. [Bonneville Power Administration]

Technical Report ·
OSTI ID:7326718
The report identifies the principal electric rate schedule concepts, examines the social, economic, and/or political policy behind the concept, explores the impact where the concept is implemented, and determines the probable reaction of Bonneville's utility customers to the concepts in terms of retail rate design. The role of utility rate setting and the justification for classes of retail consumers are discussed. The objectives guiding those persons who set BPA's rates are considered. Six different cost-based pricing concepts are discussed: (1) average cost pricing; (2) capacity only pricing; (3) energy only pricing; (4) marginal cost and long-run incremental cost and usage; (5) summer-winter differential; and (6) time-of-day pricing. Three different noncost-based concepts are discussed: (1) two-tier rates; (2) inverted rates; and (3) lifeline rates. (GRA)
Research Organization:
Foster Associates, Inc., Washington, DC (USA)
OSTI ID:
7326718
Report Number(s):
PB-252905
Country of Publication:
United States
Language:
English