UTILITY RATE STRUCTURES, PARTS A & B

The purpose of this coursework is to present and discuss utility rate schedules by customer class. After completion of this course, the participant should be able to understand the following concepts, and apply them in day-to-day activities.

• Rate setting based on cost of service regulation

• The calculation of revenue requirement

• Allowable components of operating cost

• Load forecasting

• Cost of service studies (cost allocation study)

• Functionalization and classification of costs

• Allocation of demand costs, energy costs and customer service costs between different classes of customer

• Embedded costs (average accounting cost) versus marginal costs

• The characteristics of commonly used rate schedules, including flat rate, flat rate plus fixed charge, declining block rates, inverted block rates, two part tariff with demand charge, interruptible rates, seasonal and time of day rates, etc

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