Pricing

Forging a Path to the Modern Grid

Energy Efficiency Solutions

It's not news that power systems across the United States are experiencing an upheaval. With the greater deployment of energy efficiency, renewable energy and distributed resources, as well as different usage patterns and customer demands, today's grid is struggling to perform to our expectations.

Transitioning to a more modern electrical grid will require changes to the pricing structures used by electric utilities, moving beyond the traditional two-part rate with its roots in the nineteenth century.

Price Responsive Demand

Economic Experiments

It is little wonder why so many commissions prefer a regulatory model that shields most consumers (especially residential) from real time market volatility.

Electricity or Natural Gas

Which Holds the Real Price Advantage?

The price of electricity per Btu based on marginal costs may be considerably lower than the price of natural gas when the grid is primarily supplied by wind and solar.

Dynamic Pricing Works in a Hot, Humid Climate

Evidence from Florida

We examine the impacts of dynamic pricing on conservation and load shifting in the hot and humid climate of Florida. We then compare the results to those from dynamic pricing experiments across the world. Our evaluation is based on the Energy Smart Florida pilot study, which was run by Florida Power and Light, the third-largest electric utility in the United States.

Arizona on Value of Solar

Turning Point for Distributed Energy

In December 2016, Arizona's utility regulators set in motion a new policy many believe is likely to undermine investment in solar and other distributed technologies in the state. We urge advocates and regulators looking for sustainable models of state DER policy to think carefully before following Arizona's example.

Why Are We Still Arguing About NEM?

Competitive Market Will Take Care of Next Burning Issue

I do not understand why we are still distracted by Net Energy Metering (NEM). It worked well when we had not-so-smart meters and were trying to encourage rooftop solar penetration. People in general and students of regulation in particular are left confused and can easily find some support for both sides. This results in conflicts and proposed compromises that keep the debate going at full tilt. Two things are missing or mostly overlooked in all this regulatory discourse.

Letter: Response to Cicchetti Re: Residential Demand Charges

A response to the article by Charles Cicchetti in our December 2016 issue

Charles Cicchetti's December 2016 article asserts TOU rates are a preferable alternative to demand charges for distributed energy resources (DER) customers. But TOU rates are not enough to maximize the benefits of DER.

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.