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Rates and tariff structures: Investor-owned utilities vs. rural electric cooperatives

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  • H. Craig Petersen

    (Department of Economics, Utah State University)

Abstract

This research compares the 1990 rates and tariff structures of rural electric cooperatives with those of investor-owned utilities operating in the Rocky Mountains and Southwestern United States. Results indicate that rates charged to residential and irrigation pumping customers differ by state, but not by utility type. The implication is that regulatory policies and costs have more impact on rates than does ownership form. A unique contribution of this research is its comparison of tariff structures. It was determined that, for residential customers, tariffs of rural electric cooperatives are more complex than tariffs of investor-owned utilities, but that the tariff structure does not differ by utility type for irrigation pumpers.

Suggested Citation

  • H. Craig Petersen, 1991. "Rates and tariff structures: Investor-owned utilities vs. rural electric cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 7(6), pages 597-601.
    • Handle: RePEc:wly:agribz:v:7:y:1991:i:6:p:597-601
    DOI: 10.1002/1520-6297(199111)7:6<597::AID-AGR2720070609>3.0.CO;2-H
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    References listed on IDEAS

    as
    1. Smith, Stephen A, 1989. "Efficient Menu Structures for Pricing Interruptible Electric Power Service," Journal of Regulatory Economics, Springer, vol. 1(3), pages 203-223, September.
    2. Brown,Stephen J. & Sibley,David Sumner, 1986. "The Theory of Public Utility Pricing," Cambridge Books, Cambridge University Press, number 9780521314008.
    3. Wilson, Robert, 1989. "Ramsey Pricing of Priority Service," Journal of Regulatory Economics, Springer, vol. 1(3), pages 189-202, September.
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