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Prior to electricity deregulation, the generation function of
an integrated utility typically received intense regulatory scrutiny
while T&D expenditures went largely unquestioned. Electricity
deregulation changes the regulatory focus in two ways. First,
utility ownership and costs of generation become less important
as utilities move away from self-building. Instead the focus
shifts to utility portfolio and risk management and the performance
of wholesale power markets. Second, the intervenor machinery
that previously attacked the utility generation business now brings
its advocate, attorney, and consultant energies to bear on the
utility’s T&D business: expenditures, service reliability
and quality, procurement cost prudence, and spending on DR programs.
In many cases, the utility T&D organizations do not have the
regulatory experience necessary to handle this increased level
of scrutiny. E3 professionals have extensive regulatory experience
as well as T&D expertise to provide a valuable link between
the T&D engineers and the regulators and intervenors. E3
professionals have provided this function or testified directly
in general rate cases, regulatory audits, cost-of-service studies,
revenue allocation, and rate design proceedings.
E3 at Work
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Dr. Orans and Mr. Horii retained by the law department of a
large LDC in California to advise its general rate case filing.
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Dr. Woo testified before the California Public Utilities Commission,
leading to the rejection of using emission cost adders in retail
rate design.
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The British Columbia Utilities Commission
adopted BC Hydro’s
proposal of industrial service options developed by Dr. Woo.
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Mr. Horii worked with BC Hydro’s
transmission planners to develop the long-run incremental
cost component of the Wholesale Transmission Access Tariff
adopted by the BCUC.
Selected E3 Publications
- Woo, C. K., B. Horii and I. Horowitz
(2002) “The Hopkinson
Tariff Alternative to TOU Rates in the Israel Electric Corporation,” Managerial
and Decision Economics, 23:9-19.
- Seeto, D.Q., C. K. Woo and I. Horowitz
(1997) “Time-of-Use
Rates vs. Hopkinson Tariffs Redux: An Analysis of the Choice
of Rate Structures in a Regulated Electricity Distribution Company,” Energy
Economics, 19, 169-185.
- Woo, C.K., P. Chow and I. Horowitz
(1996) "Optional Real-Time
Pricing of Electricity for Industrial Firms," Pacific
Economic Review, 1:1, 79-92.
- Woo, C.K., R. Orans, B. Horii and
P. Chow (1995) "Pareto-Superior
Time-of-Use Rate Option for Industrial Firms," Economics
Letters, 49, 267-272.
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