A once-in-a-lifetime confluence of forces is re-shaping the business models of America’s electric utilities. Rising costs, combined with technological advancements and shifts in regulatory policy...
a meaningful opportunity to participate. With the telecommunications capabilities available today, there is no excuse for a utility to decline to provide such services.
Distributed generation likewise is fit to participate in capacity markets. No barriers should hinder DG facilities from participating in these markets. A DG customer willing to commit in advance to be available at or near the system peak provides other customers benefits for which the DG customer should be compensated.
A Fair and Simple Plan
This article points out a "fair and simple plan." The recommendations-the creation of distributed generation zones, utility-side rate incentives, customer-side distributed generation zonal credits, and the elimination of perverse disincentives to distributed generation development-are consistent with this theme. The plan would achieve neutrality among the utility, DG customers, and other ratepayers, and the recommendations can be implemented without making fundamental changes to the current regulatory scheme.
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