A large commercial power customer in a very competitive business was facing serious potential losses from proposed electricity rate designs with large fixed and demand charges. Dr. Adam Borison led the team that was retained to conduct a thorough analysis of the current rate, the proposed new rates and a variety of alternatives. The analysis was based on a detailed simulation of the customer’s business over multiple years, the impact of different rates on the customer’s costs and sales, and the potential economic damage to the region. The analysis served as the basis of discussions with the local utility and testimony before the Public Utilities Commission outlining the significance of the effects. All parties are now working on a suitable customized rate.

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