Electrical Rates: The Load Factor and the Density Factor

G. P. Watkins

The Quarterly Journal of Economics, 1916, vol. 30, issue 3, 519-545

Abstract: Scope of this paper, 519. — I. The load factor important in electricity because of a peculiar technical situation, 521. — Relates especially to fixed charges, 523.— Load curves, 525. — Diversity as important as long hours' use, 527. — Explicit load-factor rates, 529. — Adequate metering practicable for large consumers, 531. — The load factor an instrument of price-differentiation; its application a matter of commercial policy, 532. — II. Quantity discounts in practice especially difficult to deal with, 533. — The grounds of especially low rates to large consumers; such rates tend to be discriminatory, 534. — Step and block rates, 536. — Effects of isolated-plant competition, 538. — Proposed density factor discounts, 539. — Differentiation thus instead of discrimination, 540. — III. Cost analysis only one among several elements in electrical rate-making, 540. — Differential policy in load-factor rates, 541. — Wholesale discounts, also, are actually differential, 544.

Date: 1916
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