Assignment
iMozzie
EECS4460.48.16.19.pptx
Power System Management
EECS 4460/5460-901
Lecture #4
Utility Business Structures and Economics
1
Revenue Requirements =
Operating Costs + Rate Base (x Rate of Return)
Cost of Capital
Rate of Return = Cost of Debt + Cost of Equity
Ratemaking Basics
Rates
=
Revenue Requirements
Sales
EXAMPLE
2
Typical Residential Design
Customer Charge: Fixed $/month
Energy Charge: Consumption ($/kwhr)
Supply Charge
Delivery Charge
Riders/Surcharges
Transmission
Taxes
Larger Customers
Demand Charge: Flat Rate x Size of Load
Rate Design Features
3
Sample Bill
4
Sample Bill
5
Tiered Rates
Performance-Based Ratemaking
Seasonal Rates
Energy Efficiency Programs
Renewable Energy Subsidies
Real Time Rates
Rate Design Topics
6
Ontario Hydro “Time-of-Use” Pricing
7
Ontario Hydro “Time-of-Use” Pricing
8
Rate Case Timing Depends on Many Factors
“Over-Earning” vs. “Under-Earning”
Investor Sentiment
Customer Sentiment
Political Environment
Utility Decision-Making
9
Utility files formal request
Commission Staff reviews filing
Intervenors review filing
Testimony Prepared
Utility
Commission staff with recommendations
Intervenors
PUBLIC HEARING
Commission deliberation
Decision(s) – “stipulation”
Rate Case Process (Ohio)
Intervenors in Ohio include:
Consumer’s Council
Industrial Groups
Ohio Energy Group
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Stipulation Signed off by:
Recent Rate Case Stipulation (Ohio)
Dayton Power and Light
Ohio Consumers Council
Kroger
Ohio Hospital Association
Ohio Environmental Council
Environmental Law/Policy Center
Ohio Partners for Affordable Energy
PUCO Staff
Ohio Energy Group
Walmart
Natural Resources Council
Environmental Defense Fund
Edgemont Neighborhood Coalition
Agreed not to Oppose:
Ohio Manufacturers Association
Buckeye Power
Industrial Energy Users of Ohio
One Energy
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Dayton Power and Light 2016-2017
Rate Stability for Six Years (Standard Service Offering)
Grid Modernization Rider
Requested $145/ 6 years; approved $105M/ 3 years
Rider for Ohio Valley Electric Generation
Funding for Low-Income Residential Customers
Economic Development Funding not Recoverable
Decoupling Rider for lost revenue
Regulatory Compliance Rider to include Consumer Education, Green Pricing Programs, Retail Settlement Costs, Bill Format Redesign Costs – with a cap and annual true-up
Storm Recovery Rider (less mutual aid revenue)
Rider for Uncollectible Expenses
Case Study: PUCO Case 16-395-EL-SSO
Substantial Comments
PUCO Case No. 16-395-EL-SSO
62 Page PUCO Order dated October 20, 2017
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