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Cost Bases for Incentive Rates Applicable to Industrial Loads
Abstract
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.
Subject
Electric Utility PricingDiscriminatory Pricing
Incentive Rates
Cost Based Alternatives
Industrial Loads
Collections
Citation
Stover, C. N. (1987). Cost Bases for Incentive Rates Applicable to Industrial Loads. Energy Systems Laboratory (http://esl.eslwin.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92816.