Cover: Electricity ratemaking: overview

Electricity ratemaking: overview

Published 1977

by Jan Paul Acton

Purchase Print Copy

 Format Price
Add to Cart Paperback15 pages $20.00

An overview of findings from recent RAND research on electricity rate structures. Accurate pricing of electricity can help to conserve important resources. Such prices will reflect the true cost of providing the service. This requires peak-load or time-of-day rates that reflect the daily and seasonal variations in the cost of generation and supply. Some significant findings: (1) U.S. industry can respond to peak-load pricing of electricity, thereby lowering its own electricity bill as well as the operating costs of the utility companies. (2) The expected savings to U.S. utilities from peak-load pricing are significant. (3) For residential and small commercial customers, there is uncertainty about response to peak-load pricing, and additional information is needed before such a policy is implemented. (4) Peak-load pricing of electricity will require equipment and administrative changes, but is not more difficult to implement and administer than traditional rate structures.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.