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Cost of Service and Rate Design Issues Affecting Industrial Customers in Retail Rate Proceedings
Abstract
There are generally three major areas of
concern in a retail rate proceeding. They
include: (1) the determination of revenue
requirements for the utility, (2) the
allocation of revenue requirements to
individual customer classes, and (3) the
allocation of revenue requirements to
individual customers within a class. If energy
costs are a significant element in the cost of
doing business, then the industrial customer
must be familiar with the activities involved
in the ratemaking process, be aware of the
issues that might be raised as a part of the
process, know how the issues might affect
energy costs, and be able to offer reasonable
alternatives. The purpose of this paper is to
describe the ratemaking issues as they relate
to large industrial customers with particular
emphasis given to cost of service and rate
design considerations.
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Citation
Stover, C. N. Jr. (1986). Cost of Service and Rate Design Issues Affecting Industrial Customers in Retail Rate Proceedings. Energy Systems Laboratory (http://esl.tamu.edu). Available electronically from https : / /hdl .handle .net /1969 .1 /92974.