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Electric utilities offer discounts for new load

J. Slaff

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Abstract

Utilities and public utility commissions defend new discounts of up to 25% offered to new and expanding users to compensate for lower demand during the recession on the grounds that employment and economic development will benefit. Critics argue that these utilities generally have excess capacity to sell and that the discounts are unfair to older customers. A poll of users found them to be pleased with the rates, but uncomfortable with the discrimination inherent in vintage pricing. (DCK)

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What this paper is about

Utilities and public utility commissions defend new discounts of up to 25% offered to new and expanding users to compensate for lower demand during the recession on the grounds that employment and economic development will benefit. Critics argue that these utilities generally have excess capacity to sell and that the discounts are unfair to older customers. A poll of users found them to be pleased with the rates, but uncomfortable with the discrimination inherent in vintage pricing. (DCK)

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Available abstract

Utilities and public utility commissions defend new discounts of up to 25% offered to new and expanding users to compensate for lower demand during the recession on the grounds that employment and economic development will benefit. Critics argue that these utilities generally have excess capacity to sell and that the discounts are unfair to older customers. A poll of users found them to be pleased with the rates, but uncomfortable with the discrimination inherent in vintage pricing. (DCK)

Key concepts: Economics, Recession, Business, Electric utility, Labour economics, Public economics, Macroeconomics, Engineering

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