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Cost Bases for Incentive Rates Applicable to Industrial Loads
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Incentive rates applicable to industrial customers are presently receiving a great deal of attention and increased acceptance. This represents a substantial change in attitude, particularly on the part of the regulatory commissions; a few years ago any proposal related to an incentive type rate would not have been considered. Conditions, in certain instances, have changed for both the electric utility and the industrial customer; an incentive type rate is one response to the changing conditions. There are, however, a variety of incentive rate options. Some of the options are clearly discriminatory and relate only to short conditions while others are well founded on cost relationships and offer a long-term alternative to both the utility and the industrial customer. The purpose of this paper is to discuss the general nature of electric utility pricing/costing relationships, identify discriminatory pricing policies related to incentive rates, outline incentive rate alternatives that are presently being considered, and to identify those alternatives that are cost based.
SubjectElectric Utility Pricing
Cost Based Alternatives
Stover, C. N. (1987). Cost Bases for Incentive Rates Applicable to Industrial Loads. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from