3 Tariff Structures to be Analyzed
WG 3 discussed the possibility of offering customers a number of different rate types as well as switching customers to a new default tariff on an opt out basis. For the purposes of comparative analysis, utilities shall analyze the impacts of the following 5 tariff structures:
1. Existing tariff structures are maintained and no price responsive demand tariffs are implemented (Operational Scenarios only)
2. By 2008 the default tariff for all customer classes is a two period time of use (TOU) rate; customers may elect to switch to their currently applicable tariff or Critical Peak Pricing- Fixed (CPP-F)
3. By 2008 the default tariff for:
a. All residential customers is CPP-F; customers may elect to switch to their currently applicable tariff or TOU;
b. All small commercial and industrial customers is Critical Peak Pricing-Variable (CPP-V); customers may elect to switch to their currently applicable tariff;
c. All large commercial and industrial customers (> 200 kW) is two part real time tariffs;10 customers may elect to switch to their currently applicable TOU tariff
4. Existing tariff structures remain the default; new tariff option is developed and available in 2007, Critical Peak Pricing-Pure (CPP-Pure), with lower off peak rates to compensate for exposure to CPP-Pure up to 5 hours/day, 15 days/year, not to exceed 90 hours/year
5. Existing tariff structures remain the default; CPP-F and CPP-V tariffs are offered to all customers on an optional basis
Analysis on the first tariff structure applies only for the Operational Scenarios. The next four tariff structures apply to the Demand Response Scenarios in the partial and full deployment cases. For each of the four tariff structures, the utility should identify the relevant customer enrollment percentages for each class. The utility should identify the rate assumed for each year in the analysis period. For the tariff structures described that include adoption of new default tariffs, at least one scenario analysis should reflect a 20% opt out rate. Utilities may also develop other tariff structure scenarios that they believe make the most sense for economic or other reasons.
For the Demand Response + Reliability Scenarios in the partial deployment case we require the utilities to perform their analysis on the fourth and fifth tariff structures described above. For the Demand Response + Reliability Scenarios in the full deployment case we require the utilities to perform their analysis on the third and fourth tariff structures described above. For customers assumed to opt out in these scenarios, there would be no obligation to install control equipment to provide emergency load reductions.
10 Two part real time tariffs include a baseline load shape where customers are charged their current tariff for their baseline usage but a marginal (real) price for increases above the baseline.
