Technical Reports

An Overview of Electricity Pricing Policies and Practices Applied to Railroad Electrification

  • 01
  • Nov
  • 1980
AUTHOR: Frank L. Raposa, Richard J. Horn
SUBJECT: Evaluation
KEYWORDS: Electrification, Price of Electric Energy, Cost Assessment
ABSTRACT: This report contains material for use by the Federal Railroad Administration in its assessment of railroad electrification. An overview is provided of the current policies and practices of the electric utility industry in its pricing of electricity. The application of current practice to electrified railroads is also reviewed. It can be expected that electricity pricing initially set for large scale electrification in the U.S. should follow current practices for serving large industrial loads while accounting for the uniqueness, of the railroad load.. Special charges may be levied to the railroad for any required utility construction, for standby facilities to cover operational contingencies, and for penalties for disturbances to the electric utility system that must be corrected by the utility. Because U.S. railroads have had so little experience with electrification, a comprehensive analysis should be conducted on the impact of electricity pricing on both the railroads and the electric utilities. This analysis should consider the technical economic and regulatory factors that will affect the price of electric energy to the railroads.