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A Plea for Simpler Electricity Tariffs

Philip E. Coleman and Christopher T. Payne, Lawrence Berkeley National Laboratory
Richard G. White, Lawrence Livermore National Laboratory

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Abstract

This paper asserts that electric rate structures in the United States are often so confusing that even large commercial customers (and their energy consultants) frequently are not aware of their cost implications. This results in an under-investment in energy conservation and load management approaches. Several case studies are presented and various rate structures are discussed. An argument is made for simpler tariffs, or at least a simplified declaration (in tariffs and/or bills) to electricity customers of what their marginal costs are, such that conservation efforts can be properly valued and designed.

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Download this paper as pdf: 7_47.pdf

Panels of the 2008 ACEEE Summer Study on Energy Efficiency in Buildings

Residential Buildings: Technologies, Design, Performance Analysis, and Building Industry Trends

Residential Buildings: Program Design, Implementation, and Evaluation

Commercial Buildings: Technologies, Design, Performance Analysis, and Building Industry Trends

Commercial Buildings: Program Design, Implementation, and Evaluation

Utility Regulation, Strategies, and Policies

Market Transformation: Taking Efficiency Mainstream

Human and Social Dimensions of Energy Use: Trends and their Implications

Energy and Environmental Policy: Planning for Greater Impacts

Strategies for Appliances, Lighting, Electronics, and Miscellaneous End–Uses

Visions of the Future: Big New Ideas for Energy Efficiency

Sustainable Communities: Systems Integration at the Community Scale

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European Directives:
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