Duquesne Proposes Marginal Pricing

Fortnightly Magazine - June 15 1996
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Duquesne Light Co. proposes to charge wholesale customers marginal cost-based rates to transmit electricity over its system. The company's April 15 filing asks the Federal Energy

Regulatory Commission to allow it to charge only marginal transmission costs (cost incurred due to additional electric power being transmitted on the system), and no embedded costs (fixed investment in plant and other facilities). "While electric companies are debating which independent system operator organization they may want to join in the future, adoption of marginal cost-based transmission rates now will ensure that all wholesale customers receive the lowest priced power throughout the period of transition to competitive markets," says David D. Marshall, Duquesne's president and CEO.


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