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Avoided Gigawatts Through Utility Capital Recovery Fees
Abstract
Electric rate structures can be used to provide
customers with the proper pricing signals as well as
provide economic incentives for increased market penetration for energy efficient new buildings. An
innovative, marginal (replacement cost) rate
structure is possible through the use of capital
recovery fees for new electric meter hookups similar
to those commonly used for new water and wastewater
hookups where the developer/owner is required to
capitalize the marginal cost of new demand.
By giving credit for the more efficient loads
placed on an electric utility system, a utility
could rapidly advance the market penetration of
commercially available, highly efficient building
systems and equipment resulting in potential gigawatts
of conserved energy. Simultaneously, the
capital costs of new generating plants could be
shifted to the end-user from the already debt-burdened
electric utility industry. This paper will
explore this pricing option and analyze its
potential on future electric load growth and the
design of efficient new buildings.
Citation
Frosenfeld, A. N.; Verdict, M. E. (1985). Avoided Gigawatts Through Utility Capital Recovery Fees. Energy Systems Laboratory (http://esl.tamu.edu); Texas A&M University (http://www.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /6852.