The Hopkinson tariff alternative to TOU rates in the Israel electric corporation

Chi Keung WOO, Brian HORII, Ira HOROWITZ

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6 Citations (Scopus)

Abstract

This paper determines three alternative Hopkinson tariffs to replace the Israel Electric Corporation's time-of-use (TOU) energy rate. The first apportions any system residual revenue requirement between customer classes, based on their respective historic peak demands. The second collects the same revenue as the current TOU rates. The third allocates generation revenue requirements for base-load and peaking generation plants in proportion to the base-load and peak-period energy consumption of each class, and allocates transmission and distribution revenue requirements in proportion to the connected load of each class. We show that a Hopkinson tariff with demand subscription is an attractive alternative to TOU rates, especially when quantity rationing is essential to maintaining a balance between the provision of energy and the demand for it. Copyright © 2002 John Wiley & Sons, Ltd.
Original languageEnglish
Pages (from-to)9-19
JournalManagerial and Decision Economics
Volume23
Issue number1
DOIs
Publication statusPublished - Jan 2002

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Industry
Energy utilization
Israel
Revenue
Tariffs
Proportion
Energy use
Energy consumption
Subscription
Customer requirements
Rationing
Energy

Citation

Woo, C. K., Horii, B., & Horowitz, I. (2002). The Hopkinson tariff alternative to TOU rates in the Israel electric corporation. Managerial and Decision Economics, 23(1), 9-19. doi: 10.1002/mde.1040