Cost of capital is often a contentious issue in utility ratemaking. This is due, in part, to the inexact nature of the tools available to financial analysts and the considerable room for divergent...
Retail Risk-Based Pricing
- T&D charges.
- Because the two customers have the same absolute volumetric risks, the fixed percentage adder is equivalent to the expected cost of service plus a non-weather based volumetric risk component.
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