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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.
Cost of Service Study. Fully allocated class cost of service study allocates each and every item of cost and assigns these costs to the various customer classes based upon engineering, operating, economic, and legal principles. Basic Steps. Functionalization Classification Allocation. What is the cost function?
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.
What is a Cost of Service Study? A Cost of Service Study (“COSS”) is a study in which the total company cost to provide electric service is spread or allocated to the customer classes.
A cost allocation, or cost of service study, is a technical procedure involving engineering techniques and accounting analyses. This procedure assigns to customers ONLY that plant and associated expenses necessary in providing electric service to them.
15 kwi 2020 · A marginal cost of service study typically measures the cost of expanding system capability to meet additional requirements for capacity at peak periods, additional transmission and distribution capacity, and additional energy usage, with at least energy-related costs differentiated by time period.
An ECOSS is a static snapshot approach, where a utility’s embedded cost revenue requirement for one year is divided among the customer classes. There are three steps in a traditional embedded cost of service study, as shown in the figure below: functionalization, classification and allocation.
