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| Cost of Service Studies are among the basic tools of ratemaking. The primary objective of a cost of service analysis is to identify the cost of providing service to each rate class as a function of load and service characteristics. A cost of service study analysis can provide a useful guideline for assigning cost responsibility to each customer classification in a way that avoids unjustifiable price discrimination. A cost of service analysis also provides information useful for designing individual rate schedules and provides support for justifying rate differentials to retail customers.
Power System Engineering, Inc. (PSE) can provide the following cost study services:
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- Retail (distribution utility) traditional “bundled” cost of service study and “unbundled” cost of service study identifying costs for functional components typically identified under electric utility restructuring.
- Wholesale (generation and transmission) traditional “bundled” cost of service analysis and “unbundled” cost of service analysis.
- Large Load Analysis to determine the cost of providing service (distribution and wholesale power) to existing or prospective large load customers.
- Load Management (interruptible or storage service) to targeted end-uses such as water heating, space heating, and air conditioning.
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| Leveraging AMR/AMI Investments
PSE can add value to your investment in automatic meter reading (AMR) or advanced metering infrastructure (AMI) by helping you acquire, maintain, and use valuable data. The availability of hourly load data provides the opportunity to refine some of the allocation procedures used in typical cost of service analyses. For example, this data can help in the allocation of power supply demand charges by providing more information on a rate class’s coincidental demand.
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