Abstract
The five preceding chapters are normative, addressing pricing in an orderly fashion. Chap. 7 departs from this course, covering a diverse array of subjects alike only in that they result from public policies or social engineering or both. Six different subjects are explored: California’s lifeline/baseline rate, designed to provide cheaper energy for the minimum essential amount of energy used; price consciousness, with the public wanting detail about the functions financed by their energy payments; timed pricing, with prices varying with the time of use in accord with the changing costs of the service provider; the color GREEN, with pricing adjusted for conservation measures, on the one hand, and non-conventional methods of energy production, on the other hand; a venture by an important regulatory commission into marginal cost as a basis for regulation; and, finally, how wind power is accommodated by a large-integrated electric grid.
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Notes
- 1.
Borrowed from John Conlisk, “Why Bounded Rationality?” Journal of Economic Literature, June, 1996.
- 2.
California Public Utilities Commission, PUC News.
- 3.
California Public Utilities Commission, Decision 96-04-050, “In the Matters of the Application of Southern California Edison Company, A. 93-12-025…and Order Instituting Investigation {SCE} I. 94-02-002,” issued April 10, 1996…
- 4.
Pacific Gas and Electric Company, Account 6359902078-9, statement dated 05/12/2009, rendered to John Wilton, Hollister, CA., for gas and electric service from 04/14/2009 to 05/11/2009.
- 5.
Ibid.,
- 6.
California Public Utilities Commission, “Comments of the Division of Ratepayer Advocates on Draft Implementation Roadmap Decision,” R.94-04-031 and. 94-04-032, dated February 20, 1996.
- 7.
Portland General Electric, “Your Guide to Time of Use” and “Time of Use Puts you in control.”
- 8.
Portland General Electric, bill for service from 05/05/09 to 06/05/09, Schedule 07, rendered to Roger L. Conkling, Portland, Oregon.
- 9.
NW Natural, bill for service from 05/05/09 to 06/05/09, Schedule 02R, rendered to Roger L. Conkling, Portland, Oregon.
- 10.
11The writer is grateful to Daniel Fisher and Gerard Bolden of BPA’s Rate Staff for their guidance, and for the following documents: 2010 Wholesale Power and Transmission Rate Adjustment Proceeding (BPA-10) “Administrator’s Final Record of Decision,” July 2009 2010 BPA Rate Case, Wholesale Power Rate Final Proposal, “Generation Inputs Study,” July 2009 2010 BPA Rate Case, Wholesale Transmission Rate Final Proposal, “2010 Ancillary Service and Control Area Services Study and Study Documentation,” July 2009 2010 Wholesale Power and Transmission Rate Adjustment Proceeding (BPA-10), “Administrator’s Final Record of Decision, Appendix C, 2010 Transmission, Ancillary Service and Control Area Service Rate Schedules (FY2010-2011)” July 2009 2010 BPA Rate Case, Wholesale Power Rate Initial Proposal, “Direct Testimony” February 2009 2010 BPA Rate Case, Wholesale Power Rate Initial Proposal, “Direct and Rebuttal Testimony and Statements of Witness Qualifications” April 2009 Quotations from the documents may not be enclosed in quotation marks.
- 11.
The 120-hour period is the highest 6 hour of generation for each of 5 weekdays of a 4-week period for each of the 12 periods (120 hour for all months except for the split months of April and August, each of which uses two 60-hour periods representing the highest 6 hour of generation for each of the 5 weekdays of each 2-week period). These 120 hour are averaged for each month, and this average is considered to be the amount of reliable monthly sustained capacity that would be available for operational planning purposes.
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© 2011 Springer-Verlag Berlin Heidelberg
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Conkling, R.L. (2011). The Public Policy/Social Engineering Approach to Pricing. In: Energy Pricing. Energy Systems. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-15491-1_7
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DOI: https://doi.org/10.1007/978-3-642-15491-1_7
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