Rates and Tariff Structures: Investor-Owned Utilities vs. Rural Electric Cooperatives

This research compares the 1990 rates and tariff structures of rural electric cooperatives with those of investor-owned utilities operating in the Rocky Mountains and Southwestern United States. Results indicate that rates charged to residential and irrigation pumping customers differ by state, but not by utility type. The implication is that regulatory policies and costs have more impact on rates than does ownership form. A unique contribution of this research is its comparison of tariff structures. It was determined that, for residential customers, tariffs of rural electric cooperatives are more complex than tariffs of investor-owned utilities, but that the tariff structure does not differ by utility type for irrigation pumpers