Article ID Journal Published Year Pages File Type
706472 The Electricity Journal 2009 11 Pages PDF
Abstract

One decoupling approach, a Straight Fixed Variable (SFV) rate design, is a rational way to recover fixed and variable costs because it aligns pricing with variable and fixed cost causation, thereby removing the utility's profit sensitivity to reduced sales. The problem with SFV is that it reduces the variable charge to short-term variable cost, leading to overconsumption. Revenue-neutral energy efficiency “feebates” combining fees and rebates offer an economic incentive for consumer energy efficiency.

Related Topics
Physical Sciences and Engineering Energy Energy Engineering and Power Technology
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