Customer Charge

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Doug Gegax - One of the best experts on this subject based on the ideXlab platform.

  • do residential net metering Customers pay their fair share of electricity costs evidence from new mexico utilities
    Utilities Policy, 2019
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    Abstract We find that 67% of New Mexico's residential net-metering (NEM) Customers are net buyers of monthly utility energy and, through these energy purchases from the utility, these Customers cover 90% of their full cost of service. For those NEM Customers that are net-sellers of “excess energy,” their only contribution to utility costs is through a small monthly fixed Customer Charge. Because NEM residential Customers with “excess energy” comprise only 33%, of total NEM residential Customers, NEM residential Customer coverage of utility fixed costs, including both the net buyers and net sellers, is 65% of the full cost of electricity service.

  • An enhanced two-part tariff methodology when demand Charges are not used
    The Electricity Journal, 2016
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    Abstract This proposed methodology uses load research sample data to objectively derive a two-part tariff that minimizes deviations from bills that would occur if we hypothetically implemented demand Charges for residential Customers. We find that about 50% of the capacity- or demand-related costs should be recovered in the fixed monthly Customer Charge and 50% recovered through the volumetric energy Charge.

  • residential winners and losers behind the energy versus Customer Charge debate
    The Electricity Journal, 2014
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    For Customers who do not have meters with maximum monthly demand reading capability and/or do not have demand Charges, a long-running debate persists regarding the amount of demand-related costs that should be recovered through the energy Charge versus the fixed monthly Customer Charge. The evidence suggests that it is correct to collect a portion of the demand-related capacity costs through the kWh energy Charge.

Larry Blank - One of the best experts on this subject based on the ideXlab platform.

  • do residential net metering Customers pay their fair share of electricity costs evidence from new mexico utilities
    Utilities Policy, 2019
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    Abstract We find that 67% of New Mexico's residential net-metering (NEM) Customers are net buyers of monthly utility energy and, through these energy purchases from the utility, these Customers cover 90% of their full cost of service. For those NEM Customers that are net-sellers of “excess energy,” their only contribution to utility costs is through a small monthly fixed Customer Charge. Because NEM residential Customers with “excess energy” comprise only 33%, of total NEM residential Customers, NEM residential Customer coverage of utility fixed costs, including both the net buyers and net sellers, is 65% of the full cost of electricity service.

  • An enhanced two-part tariff methodology when demand Charges are not used
    The Electricity Journal, 2016
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    Abstract This proposed methodology uses load research sample data to objectively derive a two-part tariff that minimizes deviations from bills that would occur if we hypothetically implemented demand Charges for residential Customers. We find that about 50% of the capacity- or demand-related costs should be recovered in the fixed monthly Customer Charge and 50% recovered through the volumetric energy Charge.

  • residential winners and losers behind the energy versus Customer Charge debate
    The Electricity Journal, 2014
    Co-Authors: Larry Blank, Doug Gegax
    Abstract:

    For Customers who do not have meters with maximum monthly demand reading capability and/or do not have demand Charges, a long-running debate persists regarding the amount of demand-related costs that should be recovered through the energy Charge versus the fixed monthly Customer Charge. The evidence suggests that it is correct to collect a portion of the demand-related capacity costs through the kWh energy Charge.

Paul Harris - One of the best experts on this subject based on the ideXlab platform.

  • Reducing Greenhouse Gas Emissions by Inducing Energy Conservation and Distributed Generation from Elimination of Electric Utility Customer Charges
    Energy Policy, 2007
    Co-Authors: Joshua Pearce, Paul Harris
    Abstract:

    This paper quantifies the increased green house gas emissions and negative effect on energy conservation (or "efficiency penalty") due to electric rate structures that employ an unavoidable Customer Charge. First the extent of Customer Charges was determined from a nationwide survey of U.S. electric tariffs. To eliminate the Customer Charge nationally while maintaining a fixed sum for electric companies for a given amount of electricity, an increase of 7.12% in the residential electrical rate was found to be necessary. If enacted, this increase in the electric rate would result in a 6.4% reduction in overall electricity consumption, conserving 73 billion kW-hrs, eliminating 44.3 million metric tons of carbon dioxide, and saving the entire U.S. residential sector over $8 billion per year. As shown here, these reductions would come from increased avoidable costs thus leveraging an increased rate of return on investments in energy efficiency, energy conservation behavior, distributed energy generation, and fuel choices. Finally, limitations of this study and analysis are discussed and conclusions are drawn for proposed energy policy changes.

Joshua Pearce - One of the best experts on this subject based on the ideXlab platform.

  • Reducing Greenhouse Gas Emissions by Inducing Energy Conservation and Distributed Generation from Elimination of Electric Utility Customer Charges
    Energy Policy, 2007
    Co-Authors: Joshua Pearce, Paul Harris
    Abstract:

    This paper quantifies the increased green house gas emissions and negative effect on energy conservation (or "efficiency penalty") due to electric rate structures that employ an unavoidable Customer Charge. First the extent of Customer Charges was determined from a nationwide survey of U.S. electric tariffs. To eliminate the Customer Charge nationally while maintaining a fixed sum for electric companies for a given amount of electricity, an increase of 7.12% in the residential electrical rate was found to be necessary. If enacted, this increase in the electric rate would result in a 6.4% reduction in overall electricity consumption, conserving 73 billion kW-hrs, eliminating 44.3 million metric tons of carbon dioxide, and saving the entire U.S. residential sector over $8 billion per year. As shown here, these reductions would come from increased avoidable costs thus leveraging an increased rate of return on investments in energy efficiency, energy conservation behavior, distributed energy generation, and fuel choices. Finally, limitations of this study and analysis are discussed and conclusions are drawn for proposed energy policy changes.

Galen Barbose - One of the best experts on this subject based on the ideXlab platform.

  • Customer economics of residential photovoltaic systems sensitivities to changes in wholesale market design and rate structures
    Renewable & Sustainable Energy Reviews, 2016
    Co-Authors: Naim Darghouth, Ryan Wiser, Galen Barbose
    Abstract:

    The Customer economics of U.S. residential photovoltaics (PV) often depend on retail electricity rates, because most utilities compensate Customer-sited PV generation via net metering. The future bill savings from net metering are uncertain and dependent on retail rate structures, wholesale market design, and renewable penetration levels, among other factors. We explore the impact of the following assumptions on the bill savings from residential PV: a wholesale electricity market design with a price cap (as opposed to an energy-only market); a retail rate with a fixed Customer Charge (as opposed to a fully volumetric rate); and increasing-block pricing (as opposed to a non-varying flat rate). A wholesale price cap can dampen the expected bill-savings erosion due to moving from a low to a high renewables scenario for Customers with time-varying rates and net metering. Moving from a fully volumetric rate to a two-part tariff rate with a fixed Customer Charge could severely erode the bill savings under net metering, because PV generation could only displace the (reduced) volumetric portion of the rate. Finally, increasing-block pricing might have an even greater impact on the bill savings from behind-the-meter PV than the other uncertainties explored in this paper.