3 ms·
> The pricing structure that is currently baked into power bills assumes that the cost of generation is paramount, and that the cost of distribution is nothing.
by kerkeslager 9y ago
> The pricing structure that is currently baked into power bills assumes that the cost of generation is paramount, and that the cost of distribution is nothing.
This isn't true; not only is distribution included in pricing, but there are three major components in pricing (generation, transmission, distribution) and you've completely omitted one.
- Dylan16807 9y agoThe difference between "transmission" and "distribution" is just an arbitrary cutoff at a certain voltage? I think it's fair to combine them, then.
- kerkeslager 9y agoEngineering-wise, I think that makes sense (I'm not sure, I was never involved in the engineering side of things when I worked at an RTO, I was involved in the financials software). However, legally/economically there are big differences between distribution and transmission, and if we're talking about cost, it doesn't make any sense to bunch these into one as if they have the same cost structure. If anything, transmission and generation have more similarities in the way they're priced (at least as of a decade ago when I worked in that industry).