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Authors

Benjamin Hill

Abstract

The volume of rate cases in the United States continues to increase, resulting in constant price hikes for utility customers. The battle between corporate profit and consumer financial satisfaction will likely continue. Considering these diametrically opposed interests, the California Public Utility Commission, at the behest of the California legislature, decreased the rate consumers pay for usage and added fixed fees based on income to utility bills. The broader goals of the Commission’s model are to maintain utility profitability, alleviate the financial burden consumers face, promote energy conservation, and develop energy efficient technology to combat greenhouse gas emissions. This Comment will analyze how effective the CPUC’s adopted model is in achieving these stated objectives and some of the challenges that may arise from this course of action. It will also analyze how other tariff structures, such as block tariffs and time-of-use pricing, achieve these goals. Ultimately, this Comment is meant to look at various alternatives to determine the best course of action for California and the United States at large.

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