Cost allocation is one of the major steps in the traditional regulatory process for setting utility rates. In this step, the regulators are primarily determining how to equitably divide a set amount of costs, typically referred to as the revenue requirement, among several broadly defined classes of ratepayers. The data and analytical methods used to inform cost allocation are often relevant to the final step of the traditional regulatory process, known as rate design.

Cost allocation has been addressed in several important books and manuals on utility regulation over the past 60 years, and these works and historic best practices are foundational. But the legacy methods from the 20th century are no more suited to the new realities of the 21st century than the engineering of internal combustion engines is to the design of new electric motors. Charting a new path on cost allocation is an important part of creating the fair, efficient and clean electric system of the future.

Para leer más ingrese a:

https://www.raponline.org/knowledge-center/electric-cost-allocation-new-era/

https://www.raponline.org/wp-content/uploads/2020/01/rap-lazar-chernick-marcus-lebel-electric-cost-allocation-new-era-2020-january.pdf