Electricity Pricing: Engineering Principles

Electricity Pricing: Engineering Methodologies and Practice provides an understanding of electricity, the customer, and the supplier as they relate to pricing. This book discusses basic concepts used to establish electricity prices and investigates engineering principles of electricity pricing. It presents techniques to evaluate pricing structures and mechanisms, offering mathematical methods and applications. It also explores ways to evaluate cost causation and translate cost elements into practical price structures. The author examines pricing in the retail sector, special pricing opportunities, types of unique pricing approaches, and electricity pricing in the wholesale sector.

Foreword	p. xiii
Preface	p. xv
About the Author	p. xix
Overview of Electricity Pricing
Introduction	p. 1
Objectives of the Electric Tariff	p. 7
Traditional Price Regulation	p. 10
Impacts of Industry Restructuring on Electricity Pricing	p. 12
The Role of Engineering in Electricity Pricing	p. 18
Chapter Organization	p. 20
Prerequisite Concepts
Introduction	p. 23
The Cardinal Laws of Electricity	p. 24
Fundamental Load Characteristics	p. 36
Elements of Utility Costs and Pricing	p. 50
Summary	p. 59
Electric End Uses
Introduction	p. 61
Customer End-Use Needs	p. 62
End-Use Value	p. 89
Customer End-Use Research	p. 91
Summary	p. 104
Customers: Electric Service Requirements
Introduction	p. 105
Customer Electricity Requirements	p. 106
Nonphysical Service Requirements	p. 116
The Customer as Energy Manager	p. 120
Customer-Owned Power Systems	p. 124
Wholesale and Compound Retail Customers	p. 132
Summary	p. 134
Power Deliver Systems: Transmission and Distribution
Introduction	p. 135
Power Distribution	p. 142
Power Transmission	p. 173
Summary	p. 190
Electric Power Production
Introduction	p. 193
Power Production Technologies	p. 195
Classifications Generation	p. 214
Generation Operation and Control	p. 219
Summary	p. 225
Revenue Metering and Billing
Introduction	p. 227
Metering of Electrical Energy	p. 229
Metering of Demand	p. 237
Special Metering Considerations	p. 244
Meter Data Acquisition, Processing, and Billing	p. 252
Summary	p. 262
The Rate Schedule: Pricing Methods and Risk
Introduction	p. 263
Qualifying Service Provisions	p. 267
Rate Structure Forms	p. 271
Altendant Billing Provisions	p. 309
Summary	p. 331
The Mathematics of Rates
Introduction	p. 335
Graphical Representation of Rates	p. 337
Formulary Representation of Rates	p. 352
Rate Comparison Methods	p. 364
Summary	p. 387
Billing Data Statistics and Applications
Introduction	p. 389
Characteristics of Billing Data	p. 391
Bill Frequency Analyses	p. 404
Bill Frequency Revenue Analyses	p. 407
Revenue Forecasting Methodologies	p. 421
Summary	p. 440
Cost-of-Service Methodology
Introduction	p. 443
Cost-of-Service Study Overview	p. 445
Cost Functionalization	p. 454
Cost Classification	p. 494
Cost Assignment	p. 530
Cost-of-Service Study Results	p. 562
Summary	p. 570
Translating Costs to Prices
Introduction	p. 571
Coincidence Factor-Load Factor Relationship	p. 576
Cost Curve Development	p. 587
Rate Design Methodology	p. 597
Guiding Principles of Ratemaking	p. 610
Summary	p. 611
Unit Conversions	p. 613
Uniform System of Electric Accounts	p. 617
Industry Classification Systems	p. 639
Internet Resources	p. 651
Bibliography	p. 655
Index	p. 661
Table of Contents provided by Ingram. All Rights Reserved.

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Electricity Pricing: Engineering Principles and Methodologies

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