A cost of service study will provide the fixed and variable costs required to service each customer class of the electric facility and compare actual cost with current revenues anticipated by each customer class serviced. A cost of service study will provide:
· A review of each rate class to identify any need to add a new class by:
· Changing the dividing line for demand between Large General customers and Small General customers
· Determining the need and value of adding a new class of service to large customer categories
· Developing rates for customers with multiple locations within a service territory to adjust for diversity between the accounts and develop a “Campus Billing” rate
· Unbundled electric rates into components that are necessary to identify appropriate rates for customers taking service at various service levels
· Wheeling rates that are determined using the unbundled cost of service results
· Time of Use rates using the cost of service and the unbundled cost results
· Review and assimilate load survey information from sample data base(s)