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What are the key principles in rate design?

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Rate designs have a variety of trade-offs. A few key principles play an important role, including:

  • Recovery of total revenue requirement, making sure OPALCO can cover all its costs
  • Fair allocations of costs among members
  • Price signals that encourage efficient use
  • Easy to understand by members
  • Practical and cost-effective
  • Rate and bill stability
  • Energy affordability for low-income members
  • Support for electrification efforts as members move away from carbon-based fuels