A study designed to determine the cost of providing service to various classes of customers; used as a basis for establishing various electric and gas service rates. Factors that must be considered in rate design are the value of the service, the cost of competitive services, the volume and load factor of the system load equalization and stabilization of revenue, promotional factors and their relation to the social and economic growth of the service area, political factors such as the sizes of minimum bills, and regulatory factors.
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