A Peak Load Pricing Policy for North Carolina Utilities Public Deposited

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Creator
  • Bonnes, Jean M.
    • Other Affiliation: Free-lance Writer
  • Bidwell, Miles O.
    • Other Affiliation: Assistant Professor of Economics, Wake Forest University
Abstract
  • In the early 1970s North Carolina electric utility companies planned to embark on construction projects for new plants costing billions of dollars. But, for the first time in the history of the state, power firm policies fell upon turbulent waters. Soaring electric rates had resulted in a tide of consumer outrage. Legislative efforts delayed the companies from sailing their original courses. Questions were being raised about utility pricing policies. In 1975, the North Carolina legislature adopted a measure by Senator McNeill Smith to require the state Utilities Commission to hold public hearings on peak load pricing and the future needs for electricity in the state. After the December, 1975 hearings, the Commission ordered the utilities to submit plans to implement this form of pricing. With peak load pricing, a consumer is charged a rate based upon the time of day he uses the electricity. This system charges a lower rate for off-peak use to encourage electricity consumption at off-peak "With peak load pricing, a consumer is charged a rate based upon the time of day he uses electricity." periods. Advocates of peak load pricing, sometimes called time of day or marginal cost pricing, claim there could be an immediate reduction in average monthly bills and that construction programs for new generating capacity to meet peak demand would be delayed for a significant period in the future.
Date of publication
DOI
Resource type
  • Article
Rights statement
  • In Copyright
Journal title
  • Carolina Planning Journal
Journal volume
  • 3
Journal issue
  • 1
Page start
  • 16
Page end
  • 22
Language
  • English
Digital collection
  • Carolina Planning Journal
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