Environmental Economics

The Economic and Environmental Benefits from Improving Electrical Rate Structures

Quantitative estimates of the internal cost savings to be derived from changes in the pricing of electric power are devised and evaluated. The econometric literature on electricity demand is surveyed, and elasticity values are selected which are parameters for the overall benefit measures. A method for using reported utility data to estimate the cost of delivered power - at the system peak and off the system peak, and for each customer class - is devised. Data on five electric utilities is used to make estimates of the potential benefits from improvements in the pricing of electric power, for each customer class in each system. The estimated potential benefits are sufficiently large to merit load curve studies by block for residential customers. Such studies are necessary preliminaries to a definitive assessment of the proposals for so called rate inversion.

  • Keywords

    4. Economic Incentives and Other Innovative Approaches
    4. Economic Incentives and Other Innovative Approaches - Pollution Fees/Charges/Taxes
    Environmental Media:
    a. Air
    a. Air - Tropospheric
    Sharefkin, Mark F.
    EPA Project Officer/ Manager:
    Shull, Roger Don
    Geographic Area:
    Study Purpose:
    Methodology Development & Evaluation, Policy Evaluation
    Inventory Record #: EE-0063
  • Participating Organizations

    Research Organization:

    Jack Faucett AssociatesAddress: 5454 Wisconsin Avenue
    City: Chevy Chase State: MD ZIP: 20015
    Phone: Fax:
    Funding Organization:
    Environmental Protection Agency, Office of Research and Development,
    Implementation Research Division
    City: Washington State: DC ZIP: 20460
    Phone: Fax:
  • Report Details
    Number of Pages:
    EPA #:
    NTIS #:
    Grant/Contract #:
  • How to Obtain Report

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    Date Linked: 05/28/2009
    Other Ways to Obtain the Report:
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    By phone: 1-800-553-6847 or 703-605-6000;
    By mail: NTIS, Department of Commerce, 5285 Port Royal Rd., Springfield, VA 22161;
    By World Wide Web: [http://www.ntis.gov].
    You will need the following NTIS report #: PB239451