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business model

Electric Ratemaking Basics and Load Flex

By Energy Rant No Comments
In the last two Rant posts, we explored dated benefit-cost tests for energy efficiency and demand response programs and introduced flaws with dated ratemaking schemes. Both constructs are based on a century-old “cost of service” business model for monopolistic utilities. In a nutshell, the cost of service includes the debt and equity financing of generation, transmission, distribution, and operations and maintenance, which includes employees, fuel, storm damage repair, and arboriculture. Add up all those costs, including competitive investor returns on equity and debt, and then smear those costs as equitably as possible across the customer base. The sum of those…
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Protest, Loser

By Energy Efficiency, Government, Utility Stuff No Comments
It has been quite a year for protests.  From Glenn Beck (although he swears it wasn’t a protest) and Jon Stewart (ditto) taking up the entire National Mall in Washington, to the months long battle royale in the 85 square miles surrounded by reality – also known as Madison, WI.  For what it’s worth, you can check out the spin in both directions regarding the recent jobs report and Wisconsin.  More time is needed to draw any conclusions. The primary problem of course in all these cases, including the greased pig wrasslin match in Washington in recent weeks, is governments…
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