Testimony before the Ontario Energy Board: prepared evidence

by Jan Paul Acton


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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.

This report is part of the RAND Corporation Paper series. The paper was a product of the RAND Corporation 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.

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