Electricity Journal Debate: A Response to Boonin's Straight Fixed Variable “Feebate” Rate Design

The Boonin proposal creates more problems than it solves. A rate structure with time-differentiated pricing based on marginal cost, with a more traditional decoupling mechanism and a fuel and purchased power adjustment, does a much better job of decoupling and achieving ratemaking objectives of revenue adequacy, efficiency, equity, price transparency, and administrative feasibility.