Pricing

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.

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.

The Impact of Time-of-Use Rates in Ontario

TOU Shows Tangible Results

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.