Description:

Description
A Consumer’s Guide to the Economics of Electric Utility Ratemaking was prepared under the direction of the Illinois Office of Consumer Services. This book is for consumers of electricity. It is designed to aid in the understanding of electric utility ratemaking. The book deals primarily with the economics of electric public utilities, although certain legal and organizational aspects of utilities are discussed.Each of the seven chapters addresses a particular facet of public utility ratemaking. Chapter One contains a discussion of the evolution of the public utility concept, as well as the legal and economic justification for public utilities. The second chapter sets forth an analytical economic model which provides the basis for the next four chapters. These chapters contain a detailed examination of total operating costs, the rate base, the rate of return and the rate structure. The final chapter discusses a number of current issues regarding electric public utilities. These include concerns related to fuel adjustment costs, advertising, taxes, construction work in progress, and lifeline rates.