Energy Policy & Legislation

Is It Finally Time to Embrace Multiyear Rate Plans?

Customers and Utilities Benefit

In the U.S., electric utilities are the major supporter of MRPs. In other countries, the government has been a major proponent. Countries such as Australia, Canada and Great Britain have relied heavily on MRPs, often citing the deficiencies of traditional rate-of-return ratemaking.
Byline: 

Ken Costello

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What is the Right Rate Design?

Fairness Is In the Eye of the Beholder

Fairness has conflicting meanings for customers, utilities, power generators, DER providers, and others. Regulators and policymakers must understand their goal should not be the perfect rate design; it doesn't exist.
Byline: 

Tanuj Deora

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Are We Paying Too Much for Residential Solar?

Many Voters Unaware of Costs

The typical solar customer in Southern California could recover their investment in seven years. After which, the facility would provide essentially free electricity for at least 18 more years. If this sounds too good to be true, it is. Those generous returns are paid for by federal taxpayers and California residential customers that lack rooftop solar.
Byline: 

By Robert Borlick

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Change Underway in Electric Power Industry

Key Trends Volume Released

In 2016, the Institute for Electric Innovation released Volumes I, II, and III of Key Trends Driving Change in The Electric Power Industry. The final volume examines rate and regulatory reform, data analytics, and grid modernization.
Byline: 

Lisa Wood

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Capitalism Debates Socialism in Honolulu

Hawaii Considering Alternatives to Private Sector Ownership

Lawmakers in Hawaii are really asking three interconnected questions. Do we need stockholders or shareholders to finance our electric utility? Are we comfortable with private sector management setting goals for the local electricity business? If the electric business is run publicly as a not-for-profit, how will we set rates?
Byline: 

Leonard Hyman and William Tilles

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Effective Rate Design

Two by Four, not a Nudge

Some might think that tweaking rates is all that is needed. This is false. Effective rate design must get customers’ attention. It is not a precise science that should be constrained by gradualism.
Byline: 

David Boonin

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Residential Demand Charges: Bad Choice

Time-of-Use is a Better Reform

Utilities go too far in their proposals to recover capacity costs from rooftop solar customers who self-generate. The affirmative case for Time-of-Use tariffs that reflect marginal costs is strong for all customers.
Byline: 

Charles Cicchetti

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Facilitating Innovation

Making Regulation a Better Surrogate for Competition

There are some ways, though perhaps modest, for regulators to move their utilities along and encourage appropriate risk taking.
Byline: 

Jeffrey Goltz

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