Problem or Area of Concern 3.(Cont) or gas. However, as these fuels become scarce the effect would be reduced. Inverted rates for commercial industrial power sales would be almost impossible to achieve due to the wide disparity in amounts and uses of electric energy by these consumers. It would appear that the whole question of adjusting rate structures to reduce electric energy consumption is a policy matter which should not be addressed in the CR&T study. 4. Rates should be more uniform. COMMENT: Utility rates are presently uniform between customers in the same classification. Utility commissions and utilities tend to set rates based on cost of service. To establish more uniform rates among consumer classes such as residential, commercial, industrial, irrigation, street lighting, etc. without regard to cost of service would involve a subsidy to certain classes of customers since they would not then pay their full share. If this were to be done it should be decided by utility commissions or other regulatory agencies but should not be a matter to be discussed in the CR&T report. 5. Industries should be located near generation to reduce transmission losses. COMMENT: For heavy power using industries, such as aluminum reduction, with heavy power demands, raw material sources outside the region, and relatively low manpower needs, this type of location might save energy. However, for most other industries, the overall energy cost could be higher due to transportation of raw materials, relocation of employees, and similar factors. The problem is too complicated for any general solution to be devised. Each prospective industrial plant developer will have to determine which location will be to his best advantage. Source Tentative Disposition C WI-68, F-5 C WI-69 F-5
