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Innovative Rates: Four Customers, Four Solutions

Fortnightly Magazine - January 15 1996

engineering from the State University of New York at Buffalo. Mr. Bowman recently joined International Resources Group of Washington, DC, as senior manager.

Table 1

Real-Time Pricing Rates

Customer Charge ($/Month) 2,000

RTP Variable Energy Rates (cents/Kwh Variable

RTP Customer Safeguard (cents/Kwh) 2.50

RTP OffPeak Adder (cents/Kwh) 0.10

RPT OnPeak Adder (cents/Kwh)

Winter Spring Summer Fall

For Firm Power 14.00 3.50 7.00 3.50

For Interruptible 11.60 2.90 5.80 2.90

Table 2

Surplus Power Rate

Customer

Charge

($/Month) 2,000

Energy Rates System Marginal

(cents/Kwh): Cost + 0.5

cents/Kwh adder

Rate Innovation Trends

The Electric Power Research Institute's Survey of Innovative Rates: 1994 Update reviews innovative rates developed by 135 utilities in the continental United States. Figure 1 shows recent industry trends in providing some of the innovative rates judged more important in a competitive market. Between 1988 and 1992, the number of real-time pricing (RTP) rates available from the surveyed utilities more than doubled, from seven in 1988 to 15 in 1992. Over the same timeframe, the number of interruptible rates rose 65 percent, and the number of surplus rates increased 106 percent. Between 1990 and 1992, the number of customers opting for these rates increased by 82 percent, 32 percent, and 4 percent, respectively.

Source: EPRI, Survey of Innovative Rates: 1994. Update prepared by CSA Energy Consultants.

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