Offer end uses as the product, and not therms or watts. The utility becomes a true energy service company.
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.
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.
TOU Shows Tangible Results
Neil Lessem, Ahmad Faruqui, Sanem Sergici and Dean Mountain
With the mass rollout of smart meters, the idea of default TOU rates is gaining traction. This article presents the load shifting and conservation impacts of TOU rates on residential electricity use in Ontario from their inception in 2009 through to the end of 2014.
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.
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.
Quantifying Subsidy from Non-Solar to Solar Customers
Barbara Alexander, Ashley Brown, and Ahmad Faruqui
A thought-provoking call for fact- and principle-based policy on the controversial net metering matter. From three respected co-authors from diverse backgrounds.
A response to the letter by Charles Cicchetti in our April 2016 issue, which was a response to the letter by Ashley Brown in our February 2016 issue.
As Ashley Brown correctly stated in his letter, large-scale solar projects produce electricity at roughly half the cost of that produced by rooftop solar. Charlie states that customers installing rooftop solar are: “… paying to reduce dependence on greenhouse gases and to expand societal benefits ....” Not exactly.
Survey of consumer advocates identifies areas of agreement and disagreement
Ryan Hledik and Ahmad Faruqui
This article summarizes perspectives on both sides of the demand charge issue. Based on this review, it proposes practical initiatives to address key concerns about residential demand charges.
A response to the Editor-in-Chief column by Steve Mitnick in our May 2016 issue
Unless and until we have access to economic bulk storage, substitution of carbon-free sources for fossil fuels will increase cost significantly. The cost must be borne by some combination of taxpayers and ratepayers.