REVENUE AND HARMONICS - AN EVALUATION OF SOME PROPOSED RATE STRUCTURES

IEEE Recommended Practice 519 sets specific limits on harmonic voltage s and currents at the ''point of common coupling'', which is usually i nterpreted as the revenue meter. Although most utilities will employ t hese limits simply to persuade and encourage their customers to reduce harmonics (and vice versa), it is also possible to construct economic incentives to encourage both the utility and the consumer to remain w ithin the limits described in IEEE 519. This paper discusses seven app roaches to this challenge, and discusses the advantages and disadvanta ges of each. It appears that the ''Harmonic-Adjusted Power Factor'' ap proach is practical, justifiable, compatible with existing,rate struct ures, and relatively easy to implement.