By Monica Greer
''Having difficulty comprehending your electrical invoice? imagine you could assessment motor potency discount rates by utilizing one uncomplicated quantity for fee in step with kilowatt-hour? This e-book will enlighten you.''-- Electrical ApparatusOctober 2012
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Additional info for Electricity Marginal Cost Pricing. Applications in Eliciting Demand Responses
Federal power authorities represent less than 1% of all electric utilities in the United States, yet provide approximately 7% of all generating capability and about 4% of the generated electricity. Federal utilities are not subject to rate regulation but must submit their rates to the FERC to demonstrate that they are at a level sufficient to repay debt owed to the federal government. ) During that period of the Great Depression, the nations’ economic peril was so severe (nearly 25% unemployment, bank closings, mortgage defaults, and 50% drop in farm crop prices) that Congress felt it did not have the time to seriously debate FDR’s various acts before voting.
Thus, returns to density measure the economies of increasing the number of kilowatt hours produced where the size of the network is fixed. While only a few studies have attempted to measure economies in transmission and distribution functions, few dispute that they exist. Schmalensee (1978, p. 270) asserted that Total distribution cost depends on the cost of transmitting services and on the spatial pattern of demand. Everywhere-decreasing average cost of transmission is found to be sufficient, but not necessary, for natural monopoly.
Employing the definition of Caves et al. (1984), returns to density (RTD; for the translogarithmic cost specification) are given by RTD = 1/ð∂ln C/∂ln YÞ, (2:17) where ∂ln C/∂ln Y is the cost elasticity with respect to output. Returns to density are increasing, constant, or decreasing for RTD greater than, equal to, or less than unity. Thus, returns to density measure the economies of increasing the number of kilowatt hours produced where the size of the network is fixed. While only a few studies have attempted to measure economies in transmission and distribution functions, few dispute that they exist.