Courier, Express & Postal Observer--On August 2, the Postal Regulatory Commission issued a Request for Proposal to produce a "Report on Peak Load Costs." Peak load costs are traditionally thought of as additional costs that are born to cover higher demand than normal. For electric utilities that have multiple options for producing or purchasing power, the most profitable operating model involves using the lowest cost electricity first and as demand rises going to more and more expense options for producing power. For that reason, many utilities have developed models that show that costs of handling peaks in power demand are higher than the cost of handling base demand and often set tariffs that encourage electricity customers to use power when there is likely to be excess capacity of the lowest cost option for producing Power. Read more!
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