4.3 Residential Time-of-Day Most of the energy usage in this class is consumed during the off-peak period, and the rate is designed to encourage this behaviour. Comparing the average annual unit revenue to the average annual marginal cost is not meaningful for specific Time-of-Day (TOD) periods, since the average marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods. To make the test meaningful, individual TOD rates are compared to average marginal costs calculated for the hours in which the TOD rates are in effect. The TOD rate has passed the test under all three pricing periods. 4.4 Time-Varying Pricing The TVP Pilot Program offers two types of tariffs: CPP and TOU tariffs, available to a limited number of eligible customers in the Domestic Service, Small General, and General Classes.[17](#page-22-2) The rates in these tariffs are designed to encourage customers to shift energy consumption from peak to off-peak hours when the cost of electricity is lower and to reduce peak load thereby reducing upward pressure on system capacity. The TVP tariffs were approved for use to a limited number of customers on June 22, 2021, as a pilot program beginning November 1, 2021. The SRMC test for these classes was conducted for the first time in the 2022 Report. The Multi-Unit Residential Building Time-Of-Use (MURB TOU) available to General Class customers was approved effective November 1, 2024. The SRMC test for the MURB TOU class is conducted for the first time in the 2025 Report. As is the case with the TOD rate, comparing the average annual unit revenue to average marginal cost is not meaningful for specific time-varying periods, since the average annual marginal cost reflects the costs in all hours, while the unit revenues are designed around specific time periods.
p. p. 23
service is priced at NS Power's incremental cost of generation at the hour the energy is required by the customer, plus the 0.5 cent per kWh fixed cost adder for additional Operating and Maintenance costs, service charges and Administratio...
AI summary The document discusses various rate structures, including Time-of-Day (TOD) and Time-Varying Pricing (TVP) tariffs, which aim to shift energy consumption to off-peak hours and reduce peak load. It also describes the Shore Power Tariff, which is a seasonal priority interruptible service for seaports with flat energy charges based on average annual marginal costs and fixed costs.