This brief paper reviews rate design approaches used by vertically integrated utilities. Jim Lazar discusses elements common to vertically integrated utilities across the U.S., including the establishment of customer classes, seasonal and time-of-use rates, inclining block rates, critical peak pricing and peak-time rebates, default vs. optional rates, and tariff riders/adjustment clauses. (This paper originally appeared as Appendix B to RAP’s “Smart Rate Design for a Smart Future.”)
Rate Design for Vertically Integrated Utilities: A Brief Overview
August 31, 2015
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