Commercial Industrial Utility Effect

Accept direct control of Subscribe to interruptible Reduction of load during water heaters rates peak periods

Store hot water to Add nighttime operations Builds load during off-peak increase space heating periods

18.7.3 Effect on Electric Rates

In the past, most U.S. electric customers have paid a single bundled rate for electricity. Many of these customers purchased from a utility that produced, transmitted, and delivered the electricity to their premises. In other cases, customers purchased from a distribution utility that had itself purchased the electricity at wholesale from a generating and transmitting utility. In both of these cases, the customer paid for electricity at a single rate that did not distinguish between the various services required to produce and deliver the power. In the future, as a result of the deregulation process already underway, there is a far greater likelihood that initially large customers, and later many smaller customers, will have the ability to select among a number of different suppliers. In most of these cases, however, the transmission and delivery of the purchased electricity will continue to be a regulated monopoly service. Consequently, future electricity consumers are likely to receive separate bills for:

• electric capacity and energy;

• transmission; and

• distribution.

In some cases, a separate charge may also be made for system control and administrative services, depending on exact industry structure in the given locality. For each such charge, a separate rate structure will apply. At present, it appears likely that there will be significant regional and local differences in the way these rates evolve and are implemented.

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