Articles
The following articles are available for viewing from this site:
Fundamentals of Economic Development Strategy for Utilities, John Wolfram, December 2011
Abstract: This paper describes the fundamental elements of a practical and effective utility economic development strategy – one that includes incentive rate offerings. Utilities that develop sound approaches for supporting business attraction efforts will reap both financial and political rewards; those that implement comprehensive strategic plans with specific tactical steps, including the provision of incentive rate offerings, can be positioned to optimize public relations advantages and, more importantly, to help enhance and protect the revenue streams from large customers -- especially during periods of widespread economic uncertainty.
Load Retention Rates: A Framework for Regulatory Evaluation, John Wolfram, October 2011
Abstract: Since the U.S. economic downturn began in early 2008, electric and gas utilities have turned to Load Retention Rates as a tool to help protect revenues from at-risk large commercial and industrial customers. This article summarizes the well established principles for use by utilities and regulators that have emerged from the broad body of regulatory deliberation spanning several decades. Properly designed and administered load retention rates can lead customers to make business decisions that are both financially attractive and economically efficient. Such decision-making provides an advantage to the utility, to the customer taking service under the incentive rate, to the other rate classes of the utility, and to the region as a whole. Utilities should thoroughly investigate and pursue the implementation of these incentive rates to help enhance and protect the revenue streams from large customers, especially during periods of widespread economic uncertainty.
Do Cost Based Rates Reduce the Incentive for Pursuing Energy Efficiency?, Marty Blake, June 2011
Abstract: This article dispels the myth that a cost-based utility rate design that increases the monthly fixed customer charge reduces the incentive for retail customers to embrace energy efficiency and energy conservation.
Overview of Electric Cost of Service Studies, John Wolfram, February 2011
Abstract: A Cost of Service Study is one of the most effective analytic tools available to a utility when designing utility rates. This article gives an overview of how an electric cost of service study is put together and used to assess the reasonableness of the rates an electric utility charges its customers.
Why are Utility Cost of Service Studies Important? , Marty Blake, September 2010
Abstract: A Cost of Service Study is one of the most effective analytic tools available to a utility when designing utility rates. This article describes the reasons why performing a cost of service study can be beneficial to both the utility and the customer when designing rates to recover each customer's share of the utility's costs.
Creating the Right Retail Rate Environment for Energy Conservation and Energy Efficiency, Marty Blake, December 22 2009, Management Quarterly, ISBN 0025-1860
Abstract: The time is ripe for Electric Cooperatives to revise their retail rates to create the right environment for energy efficiency and conservation and the align the cooperatives financial interests with those of its members.
