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Massachusetts to utilities: start time-of-day

S. Minerbrook

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Abstract

Electric utilities in Massachusetts are ordered to eliminate declining-block rates in favor of time-of-day rates. The state's Department of Public Utilities (DPU) will require peak-pricing schedules from all utilities seeking new rates. While time-of-day rates can help companies with continuous operations, the savings may not be enough to cover the added expenses. Companies with a single-shift operation could suffer from the new ruling. Metering devices will be required for all large users, who will have a lower rate if they install their own meters. Smaller users will submit an unmetered rate based on their relative share of peak loads. The haste of DPU's required implementation is causing concern among some companies, but the order has been praised by others for its attempt to distribute peak-load responsibility. (DCK)

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Electric utilities in Massachusetts are ordered to eliminate declining-block rates in favor of time-of-day rates. The state's Department of Public Utilities (DPU) will require peak-pricing schedules from all utilities seeking new rates. While time-of-day rates can help companies with continuous operations, the savings may not be enough to cover the added expenses. Companies with a single-shift operation could suffer from the new ruling. Metering devices will be required for all large users, who will have a lower rate if they install their own meters. Smaller users will submit an unmetered rate based on their relative share of peak loads. The haste of DPU's required implementation is causing concern among some companies, but the order has been praised by others for its attempt to distribute peak-load responsibility. (DCK)

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Available abstract

Electric utilities in Massachusetts are ordered to eliminate declining-block rates in favor of time-of-day rates. The state's Department of Public Utilities (DPU) will require peak-pricing schedules from all utilities seeking new rates. While time-of-day rates can help companies with continuous operations, the savings may not be enough to cover the added expenses. Companies with a single-shift operation could suffer from the new ruling. Metering devices will be required for all large users, who will have a lower rate if they install their own meters. Smaller users will submit an unmetered rate based on their relative share of peak loads. The haste of DPU's required implementation is causing concern among some companies, but the order has been praised by others for its attempt to distribute peak-load responsibility. (DCK)

Key concepts: Order (exchange), Business, Metering mode, Cover (algebra), Peak load, Operations management, State (computer science), Finance

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