Low-usage Customers Bumped from Dsm Program

Fortnightly Magazine - April 1 1996
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Despite complaints from customers, the Florida Public Service Commission (PSC) has approved Florida Power Corp.'s plan to reduce incentive payments under existing load-management rate programs by one dollar, and

to limit eligibility to customers that use at least 600 kilowatt-hours. The PSC said the usage limitation would "restore the cost-effectiveness" of residential load management, which is designed to reduce peak demand, not energy usage. The PSC explained that low-usage customers do not contribute significantly to system peak demand nor, consequently, to the demand reductions achieved by load-management programs. The PSC added that the changes will reduce rates for all customers by eliminating expenses that do not produce enough savings to pass the Rate Impact Measure test of demand-side cost-effectiveness. Re Florida Power Corp., Docket No. 941232-EG, Order No. PSC-95-1587-FOF-EG, Dec. 26, 1995 (Fla.P.S.C.).


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