Pricing

“New strategies are emerging that provide temporary or long-term pathways for DERs to avoid grid constraints that can lead to costly and time-intensive utility infrastructure upgrades. These strategies typically fall under the banner of flexible interconnection or flexible connection.”

“By severing the traditional safeguards for reasonable system growth, these policies create inappropriate cross subsidies and erode one of the core mechanisms through which utility rates have historically been kept affordable.”

“If we define unaffordability as when households with limited means and assets encounter a confluence of bill spikes and other adversities that compel them to miss payments and forego necessities, then data from all directions are informing us that there is indeed a crisis.”

“The public needs confidence that spending is being made in the right place, and there is a grid governance role for the customer to be heard. History has shown that when the public understands and supports the utility, rate cases have a greater chance for approval.”

Conversation with former president and commissioner Mike Peevey with Brattle Group principal Ahmad Faruqui.

There is a better way to implement the Buy All-Sell All model. Instead of setting VoS rates based on speculative forecasts, why not just pay prices that reflect the actual, contemporaneous value of the solar energy? Why not, effectively, buy the solar energy by the minute?

How to price electricity when the grid goes 100 percent green.

Business models will be tailored to meet market purpose and require pricing approaches that match the nature of the offering to how customers perceive value.

The failure to allocate costs appropriately to a utility business unit is in direct conflict with cost allocation guidance from NARUC.

Adjusting water prices based on supply and demand conditions will create more effective and efficient utilities, lower customer rates and protect the environment.