TOU rate design

[dfopiso]

hello to all,

i am working for a utility company and have been using embedded cost of service methodology in our rate design for the longest time. recently our regulators introduced TOU (time-of-use) pricing for our power supplies and mandated all distribution utilities to file respectfive TOU rates. can anyone discuss this with me please. thanks in advance

dave opiso
dagupan electric
philippines

 

[EEJaime]

Here in California, there are several types of rates, our utility companies have differing rate structures for different types of clients, commercial, industrial, agricultural, etc.... Because of limited generating capacity and peak demands sometimes outstripping available power, utilities have introduced several different billing rate schedules. There are numerous rate schedules each designed for a specific customer base. Some of these are quite complex with "On-peak", "Mid-Peak" and "Off-peak" rates as well as "Demand Charges", "Delivery charges", etc.... You can look at some these at

http://www.sce.com/AbutSCE/Regualtory/tariffbooks/ratespricing/businessrates.htm

Hope that helps.

 

[itsmoked]

dafo74;

The quick answer to "What are TOU rates?"

TimeOfUse rates are when a user is specially metered with a meter that keeps track of the time AND DATE. Then the user's power consumption is recorded in different counters based on the time of day AND day of week. For instance the user will be charged 10 cents per kwHr for energy used between 6PM and 6AM AND weekends but will be charged 20 cents per kwhr between 6AM and 6PM weekdays.

Frankly the utilities want everyone on TOU period. Part of the grand scheme of making this occur is to get as many people into this program as possible as soon as possible. To do this they offer programs like if, the standard flat rate energy is 15 cents per kwhr then if a customer will go under the yoke of TOU they will get the off peak rate of perhaps half the flat rate but the peak rate will be twice as much... carrot and the stick then proceeds.