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Show FIGURE 6 Salt lake City Seasonal Rates 3.00 2.50 2.00 1.50 Summer Rate Winter Rate Present Rate 1.00 0.50 $ 0.79/ 1,000 gallons - $ 0.65/ 1,000 gallons $ 0.51/ 1,000 gallon's Base rate S/ 1,000 gals. 0 5 10 15 20 25 30 35 40 1,000 gallons/ month In the end, the electric power industry accepted the fact that load growth and system expansion consistently resulted in higher costs per unit developed. Finally, equity concerns prompted the move to more progressive rate designs. Given the positive relationship between income and energy use, wealthy consumers benefitted from declining block rates. Conversely, low income users and senior citizens paid proportionally more. Comparing Water and Electric Utilities In comparing water and electric utilities, the differences are particularly interesting. Electricity, a secondary product and never used itself, provides for the operation of a wide range of specific end- uses. Water, by comparison, is used directly and over a far more limited range of uses. Another important difference is that electricity supply cannot be stored in large quantities over any period. This is why the electric industry must distinguish between total kilowatt hour usage and instantaneous kilowatt hour demand. Both industries are highly capital intensive. Planners in both must accurately determine if individual investments match the loads on the system. Excess investments may not always be recovered. Alternatively, failure to provide enough capacity may create economic crises. A crucial difference between the two industries is the manner in which new capacity is built. Electric utilities may add new capacity in small increments with relatively few siting problems. Capacity expansion for water utilities is determined exclusively by geography. Furthermore, electric utilities can balance loads 41 |