Kent L. from Sioux Falls here. I'm working on a rate comparison project and need to model both inclining block rates (where price goes up with usage) and declining block rates (where price goes down). Does anyone have an Excel template that handles both structures cleanly? I'm specifically comparing Xcel Energy Minnesota Rate Schedule A-15 (declining blocks) versus their proposed Rate Schedule A-20 (inclining blocks). The math is getting complex with different tier breakpoints.
Excel Template for Comparing Inclining vs Declining Block Rates?
Linda F. in Milwaukee. I built something similar for We Energies rate comparisons last year. The trick is setting up your worksheet with variable tier structures - I use VLOOKUP tables for the rate blocks and IF statements to calculate which tier each kWh falls into. For Xcel's A-15, the blocks are typically 0-1000 kWh, 1001-2000 kWh, then 2000+ at the lowest rate. The inclining structure flips that logic. I can share my template if you're interested - just message me directly.
Karen S. in Green Bay. Linda, that sounds exactly what I need too. I'm dealing with Wisconsin Public Service rate schedules that have both structures depending on customer class. The declining blocks for commercial customers can create some weird incentives where higher usage actually reduces the average rate significantly.
Norm R. from Des Moines. For MidAmerican Energy rates here in Iowa, I've found it helpful to graph the total bill cost versus usage levels to visualize where the breakeven points are between rate schedules. Sometimes declining block rates favor high-usage customers so much that it changes the whole recommendation. Kent, are you looking at annual usage patterns or just monthly snapshots?
Thanks for the responses everyone. Norm, I'm modeling annual usage with monthly breakdowns because Xcel's seasonal rates vary significantly. Linda, I'd definitely appreciate seeing your template - the VLOOKUP approach sounds much cleaner than my nested IF statements. Karen, you're right about the weird incentives. I found one scenario where a customer could save money by actually increasing usage to hit the lower tier rates.
Randy Dawson here. This is a great discussion on rate modeling. One thing I'll add for everyone working on these comparisons - make sure you're pulling the most current tariff effective dates from your state PUC websites. Rate structures change frequently, especially with utility rate cases pending. For Xcel territory specifically, they filed a general rate case in Minnesota (Docket 21-630) that could significantly alter the block structures Kent is modeling. I'd recommend checking the Minnesota PUC docket for any proposed changes before finalizing your analysis.
Anita W. in Fargo. Randy brings up a good point about pending rate cases. We had a similar issue with Otter Tail Power where we built models based on current tariffs, then they filed a rate case two months later that completely changed the structure. Now I always check pending dockets before doing major rate comparisons. North Dakota PSC posts rate case filings pretty quickly on their website.