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Different methods of electricity generation can incur a variety of different costs, which can be divided into three general categories: 1) wholesale costs, or all costs paid by utilities associated with acquiring and distributing electricity to consumers, 2) retail costs paid by consumers, and 3) external costs, or externalities, imposed on society.
The law forced electric utilities to buy power from other more efficient producers, such as cogeneration plants, if that cost was less than the utility's own "avoided cost" rate to the consumer; the avoided cost rate was the additional costs that the electric utility would incur if it generated the required power itself, or if available, could ...
In public utility regulation, decoupling refers to the disassociation of a utility's profits from its sales of the energy commodity. [1] Instead, a rate of return is aligned with meeting revenue targets, and rates are adjusted up or down to meet the target at the end of the adjustment period.
A survey of electric utility providers in Colorado shows a comparison of the cost of 700 kilowatt hours among 49 different municipal, co-op and investor utilities: Fort Collins ($89.65 monthly ...
According to the U.S. Energy Information Administration (EIA), "Electricity prices generally reflect the cost to build, finance, maintain, and operate power plants and the electricity grid." Where pricing forecasting is the method by which a generator, a utility company, or a large industrial consumer can predict the wholesale prices of ...
JCP&L's increase does not take into account a separate settlement between the utility, the BPU's staff and others that will raise its base rate, which would hike bills by 3.6% starting June 1. The ...
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The logic behind this is simple. If a utility's revenue requirement is $10 million, and it expects to sell 100 million units, the rate per unit is $0.10 cents/unit. If the utility actually sells 100 million units at $0.10 cents/unit, it will collect its $10 million revenue requirement.
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