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Politics of self-service wheeling and wheeling to end-users

S. Spiewak

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Abstract

Since there are more political than transmission issues involved in wheeling for cogenerators, the author describes three political classes of wheeling wholesale, self-service, and retail. He describes the nature of each and the effect upon the utility. He shows that a utility can engage in wholesale wheeling transactions with little risk, while self-service wheeling can open the utility to charges of favored rate breaks. Retail wheeling hurts the residential ratepayer because, while it may be a competitive way to provide electricity as a commodity, it is not competitive in providing the service. Cogenerators would have to reconfigure themselves to become a utility if they are to provide the same services. 1 figure.

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What this paper is about

Since there are more political than transmission issues involved in wheeling for cogenerators, the author describes three political classes of wheeling wholesale, self-service, and retail. He describes the nature of each and the effect upon the utility. He shows that a utility can engage in wholesale wheeling transactions with little risk, while self-service wheeling can open the utility to charges of favored rate breaks. Retail wheeling hurts the residential ratepayer because, while it may be a competitive way to provide electricity as a commodity, it is not competitive in providing the service. Cogenerators would have to reconfigure themselves to become a utility if they are to provide the same services. 1 figure.

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Available abstract

Since there are more political than transmission issues involved in wheeling for cogenerators, the author describes three political classes of wheeling wholesale, self-service, and retail. He describes the nature of each and the effect upon the utility. He shows that a utility can engage in wholesale wheeling transactions with little risk, while self-service wheeling can open the utility to charges of favored rate breaks. Retail wheeling hurts the residential ratepayer because, while it may be a competitive way to provide electricity as a commodity, it is not competitive in providing the service. Cogenerators would have to reconfigure themselves to become a utility if they are to provide the same services. 1 figure.

Key concepts: Wheeling, Service (business), Politics, Commodity, Electricity, Business, Electric utility, Economics

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