Battle lines forming on electric rate structures

Journal Article · Mon Oct 04 04:00:00 EDT 1976 · Energy User News; (United States)

OSTI ID:7331036

Beiser, M

Electric rate structures are under review nationwide. Industry traditionally has been charged less per kilowatt hour because it does not contribute heavily to utilities' distribution costs, which account for 40 percent of electricity costs. A referendum is being presented on the November 1976 ballot in Massachusetts whereby the voters may change the rate structure that would flatten the differences between residential and industrial rates. Other states are also investigating rate change structures, the most controversial being marginal costing, or long-range incremental costing. Advocates of marginal costing include academic economists, environmental economists, and consumer groups. A leading opponent of marginal costing is ELCON, an association of ten large industrial electricity consumers. Peak-load pricing and its variations - time-of-day rate and seasonal pricing - are discussed. ''Lifeline rates,'' already approved in California, are intended to help the poor or low power consumers. It is noted, though, that some low power users are wealthy. The key question, then, is whether to structure rates based on who imposes costs on the system. The question then arises on who imposes the costs.

• OSTI ID: 7331036
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 1:1; ISSN EUSND
• 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
BUILDINGS
CHARGES
COST
ECONOMICS
ELECTRIC POWER
HOUSES
INDUSTRIAL PLANTS
LEGISLATION
POWER
PUBLIC UTILITIES
RESIDENTIAL BUILDINGS