ABSTRACT

This entry discusses how electric, gas, and other regulated utilities charge commercial, industrial, and institutional customers for their energy services. In today's utility industry, there are numerous factors which make up a consumer's monthly electric or gas bill. This entry contains sections that will individually describe each important component of most common electric and gas rate structures. A full understanding of each component will then allow a customer to comprehensively read and understand a monthly utility bill. Types of loads, cost allocation methods, billing factors, rate design strategies, common electric rates, and common gas rates will all be discussed.This entry originally appeared as “Utility Rate Structures” (Chapter 21) inCombined Heating, Cooling & Power Handbook, by Neil Petchers. Published by Marcel Dekker, Inc., New York, NY, 2003; reprinted with permission from AEE/Fairmont Press.