The Hopkinson tariff alternative to TOU rates in the Israel Electric Corporation

Chi-Keung Woo, Brian Horii and Ira Horowitz
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Brian Horii: Energy and Environmental Economics, Inc., 353 Sacramento Street, Suite 1700, San Francisco, CA 94111, USA, Postal: Energy and Environmental Economics, Inc., 353 Sacramento Street, Suite 1700, San Francisco, CA 94111, USA
Ira Horowitz: Decision and Information Sciences, Warrington College of Business Administration, University of Florida, Gainesville, FL 32611, USA, Postal: Decision and Information Sciences, Warrington College of Business Administration, University of Florida, Gainesville, FL 32611, USA

Managerial and Decision Economics, 2002, vol. 23, issue 1, 9-19

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.

Date: 2002
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Persistent link: https://EconPapers.repec.org/RePEc:wly:mgtdec:v:23:y:2002:i:1:p:9-19

DOI: 10.1002/mde.1040

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