Flexible pricing schemes generally fall into four categories:
Load Retention Rates. Can prevent a customer from exiting system, either by relocating or choosing to self-generate. If retail competition is allowed, load retention rates can prevent customers from choosing a different generation company.
Economic Development Rates. May attract new customers to a service territory, or encourage existing customers to expand operations and boost demand. Differ from load retention rates by purporting to create jobs.
Flexible Rates (Flexrates). Similar to load retention rates, but
utilities enjoy greater flexibility and discretion. May escape regulatory review. No separate tariff needed for each rate or customer; instead, rates must adhere to established guidelines.