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Electric Utility Systems and Rates

Commercial and Industrial Customers 101 - Electric Utility Systems and Rates

Course Description

This course has been used by utilities to acquaint their customers with the physical components of electric power production and distribution. The course explores how these physical components causedifferent types of costs and how these costs are recovered through different types of rate components.The reason for each type of rate component is discussed along with the costs that it is designed tocapture. The underlying logic for offering this course is that it is easier to deal with a well informedcustomer. It is based on a belief that if customers understand the logic for the various types of charges,they will have fewer complaints regarding rates and billing.

Learning Objectives

1. basic terminology of electric power production and distribution,

2. components of electric power systems

a. generation

b. transmission

c. distribution

d. ancillary services

3. cost drivers

a. demand costs

b. energy costs

c. customer costs

4. rate components

a. customer charge

b. energy charge

c. demand charge

d. fuel adjustment clause / purchased power adjustment

e. power factor adjustment

f. facilities charges

g. minimum bill

5. Impact of load factor on the delivered cost of electricity

6. Two practical exercises for calculating bills


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