Abstract
Marginal-cost pricing for gas and electric utilities has been accepted after years of debate, but its present form of implementation does not resolve the problem of whether the individual consumer or the utility will control load management decisions. The authors examine issues surrounding time-of-use pricing versus load management, the determination of marginal capacity costs by relative loss-of-load probability (LOLP), the determination of marginal costs of transmission and distribution facilities, and how to bridge the transition from flat rates to voluntary time-of-use rates for residential customers. They feel the revenue requirements issue will become pressing as utilities need capital for future construction. The economics of lifeline rates, auction bidding, and other schemes are weighed against their potential for energy and resource conservation.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
