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Electricity Ratemaking and Equitable Rate Design - Brattle Group How are rate structures evolving as the electricity sector evolves? What are examples of industry best practices in rate design? Do customers respond to time-of-use rates? Customers have begun decarbonizing consumption Yesterday’s customer is today’s prosumer and tomorrow’s prosumager
Overview of Rate Regulation (continued) - NARUC Rate Base Revenue Requirement Rate Base Determination General Definition of Rate Base - A Utility’s Rate Base is the Total Value of its Various Properties: (for an electric utility) • Power Plants • Transmission Lines • Buildings • Fuel Stocks
RATEMAKING FOR ELECTRIC UTILITIES - CATALYST The rate design should (a) allow the electric utility to secure the target revenue requirement, (b) align with the wholesale power rate structure, (c) minimize subsidies within and between rate classes, (d) encourage efficient usage, and (e) properly charge and credit consumers with
Utility ratemaking - Wikipedia Utility ratemaking is the formal regulatory process in the United States by which public utilities set the prices (more commonly known as "rates") they will charge consumers [1]
Rate School - NARUC Calculate the rate base, revenue requirement, and learn rate design for a regulated utility Demonstrate an appropriate knowledge of operating expenses, trackers, depreciation and taxes related to regulated utility rate making
Phase II – Rate-Setting - NWT Public Utilities Board Phase II – Rate-Setting Once the regulator issues a decision on the Phase I revenue requirement, the utility company must prepare and file Phase II of its General Rate Application The main purpose of a Phase II application is to determine the specific rates that each type of customer will be charged and to demonstrate that these rates will
Energy Utility Rate Setting - Lowell Alt - Google Books This book explains how the traditional rate-setting process is commonly done for energy utilities This book includes a discussion of revenue requirement, rate base, cost of capital,
Handbook for Utility Rate Applications (electricity and natural gas) It outlines the key principles and expectations the OEB will apply when reviewing rate applications The Handbook is applicable to all rate regulated utilities, including electricity distributors, electricity transmitters, natural gas utilities and Ontario Power Generation
How Utilities Determine Generation and Distribution Rates Setting these rates is typically dependent on a rate formula that is designed to reveal a utility’s revenue needs The formula looks like this: R = E + (V – D)r Each element in the formula stands for a particular factor and are defined as follows, R stands for: Revenue Requirement (can also refer to Rate Level) It defines the total amount
PRIMER ON RATE DESIGN FOR COST-REFLECTIVE TARIFFS - NARUC Rate design sits at the nexus between customers and utilities, determining the prices that customers pay for electricity and impacting the revenues that utilities raise to support commercial viability Designing rates is not an easy task