Testimony before the Ontario Energy Board: prepared evidence
Evidence submitted in January 1979 to the Ontario Energy Board, prepared for the Public Interest Advocacy Center on behalf of the National Antipoverty Organization of Canada. The author argues: Marginal cost pricing of electricity is feasible and a sound basis for ratemaking, and promotes economic efficiency, fairness, and financial adequacy. There is abundant evidence that electricity customers can adjust satisfactorily to time-of-day electricity rates, and that these adjustments are beneficial to both the utility and to customers in achieving lowered electricity bills. Time-of-day rates give customers opportunities for cost saving that conventional rates do not. In many cases it increases the competitive advantage of industrial customers to have time-of-day rates available. The line management proposal to create a "diversity benefit" subsidy and to apply it selectively to certain large customers constitutes discrimination in rate making not based on differences in costs of supply.