Impacts of Western Area Power Administration's power marketing alternatives on retail electricity rates and utility financial viability

摘要

Changes in power contract terms for customers of Western's Salt Lake City Area Office affect electricity rates for consumers of electric power in Arizona, Colorado, Nevada, New Mexico, Utah, and Wyoming. The impacts of electricity rate changes on consumers are studied by measuring impacts on the rates charged by individual utility systems, determining the average rates in regional areas, and conducting a detailed rate analysis of representative utility systems. The primary focus is an evaluation of the way retail electricity rates for Western's preference customers vary with alternative pricing and power quantity commitment terms under Western's long-term contracts to sell power (marketing programs). Retail rate impacts are emphasized because changes in the price of electricity are the most direct economic effect on businesses and residences arising from different Western contractual and operational policies. Retail rates are the mechanism by which changes in cost associated with Western's contract terms are imposed on ultimate consumers, and rate changes determine the dollar level of payments for electric power incurred by the affected consumers. 41 figs., 9 tabs.