Economic Research Institute Study paper
Utah State University
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Much has been said and written on efficient and equitable pricing of public utility products, yet utility users are often charged prices which bear little resemblance to actual costs of providing services or to other criteria established. Among causes is the hectic schedule of the public utilities governing body which is continually bombarded by rate requests and other matters. The adversial nature of utility vs. users and the contesting users arguments in the spread of rates do not lend themselves to discovery of efficient and equitable prices. Overcapacity in electrical generating facilities which increases costs has mostly occurred because of projecting ever-increasing loads at peak capacity use hours, days, and years. Little or no attention has been given to the possibility of load management by pricing differentials or other incentives.
Andersen, Jay C., "Setting Utility Prices: Appropriate Power Costs for Utah Irrigation Pumpers" (1984). Economic Research Institute Study Papers. Paper 402.