same price signals. UCAN provided the following chart, which concludes that a TOU rate meets the RDP better than a tiered rate. R.12-06-013 Rate Design Principles Tiered Rate TOU Rate 1. Low-income and medical baseline customers should have access Y* Y* to enough electricity to ensure basic needs (such as health and comfort) are met at an affordable cost. 2. Rates should be based on marginal cost. N** Y 3. Rates should be based on cost-causation principles. N*** Y 4 Rates should encourage conservation and energy efficiency. Y/N Y/Y 5. Rates should encourage reduction of both coincident and N/N Y/[N] peak demand. 6. Rates should be stable and understandable and provide Y/N/N Y/Y customer choice. 7. Rates should generally avoid cross-subsidies, unless the Y***** Y subsidies appropriately support explicit state policy goals. 8. Incentives should be explicit and transparent. Y* Y* 9. Rates should encourage economically efficient decision-making. N Y 10. Transitions to new rate structures should emphasize customer Y/Y/Y**** Y/Y/Y**** education and outreach that enhances customer understanding and acceptance of new rates, and minimizes and appropriately considers the bill impacts associated with such transitions.
same price signals. UCAN provided the following chart, which concludes that a TOU rate meets the RDP better than a tiered rate. R.12-06-013 Rate Design Principles Tiered Rate TOU Rate 1. Low-income and medical baseline customers should have access to enough electricity to ensure basic needs (such as health and comfort) are met at an affordable cost. Y* Y* 2. Rates should be based on marginal cost. N** Y 3. Rates should be based on cost-causation principles. N*** Y 4 Rates should encourage conservation and energy efficiency. Y/N Y/Y 5. Rates should encourage reduction of both coincident and peak demand. N/N Y/[N] 6. Rates should be stable and understandable and provide customer choice. Y/N/N Y/Y 7. Rates should generally avoid cross-subsidies, unless the appropriately support explicit state policy goals. Y***** Y 8. Incentives should be explicit and transparent. Y* Y* 9. Rates should encourage economically efficient decision-making. N Y 10. Transitions to new rate structures should emphasize customer education and outreach that enhances customer understanding and acceptance of new rates, and minimizes and appropriately considers the bill impacts associated with such transitions. Y/Y/Y**** Y/Y/Y**** subsidies