The Move Towards Marginal Cost Pricing in Electricity,
Abstract
It comes as no surprise to observers and participants in the American electricity scene that a lot of things have changed recently. But what is emerging more slowly is the relationship between some of these recent changes and the need to reform the basic manner by which we set the price of electricity. The purpose of this paper is to try to draw together some of the principal factors behind the movement towards rate reform and to discuss some of the fact needed to judge whether the suggestions are useful for a particular utility. Three main areas are: First, What has changed in American electricity that causes us to reexamine the pricing. Second, Why is marginal cost pricing considered the most attractive alternative to present rate structures. Third, What do you need to know before deciding to implement marginal cost pricing in a particular utility.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 1976
- Accession Number
- ADA037920
Entities
People
- Jan Paul Acton
Organizations
- RAND Corporation