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A cost of service study is an analysis of costs that assigns to each class of customers its proportionate share of the utility’s total cost of service, i.e., the utility’s total revenue requirement.
- Class Cost of Service study is an analysis of the total costs incurred by a utility and allocated to various rate classes. Cost Allocation (Cont’d) . Class Cost of Service Study will: Step 1: Functionalize Costs Step 2: Classify Cost Step 3: Allocate Costs. At each step ask, “What caused the cost to be incurred?” Functionalization.
Major Steps of the Class Cost of Service Study. A class cost of service study begins with a detailed documentation of the numerous budgetary elements of the total revenue requirement for the jurisdiction in question. The detailed jurisdictional revenue requirements are the data inputs to the CCOSS.
Cost of Service studies to understand exactly how much it costs for the utility to provide reliable electric service to each class of customer. These will be discussed in greater detail in Sections 2.1 and
8 sie 2019 · Cost of Service Study (COSS) or Cost of Service Analysis • COSS is a detailed analysis intended to allocate a utility’s revenue requirements to its customers in an equitable manner • Horizontal equity: Customers with similar burdens on the system pay similar rates • Vertical equity: Customers with dissimilar burdens on
Learn how to evaluate and establish utility rates using cost of service (COS) studies. Find out the methods, approaches, and examples of COS studies for different rate classes and scenarios.
A cost of service study is an analysis of costs that assigns to each class of customers its proportionate share of the utility’s total cost of service, i.e., the utility’s total revenue requirement.
