Pricing

Here Comes the Sun

Growing Impacts of Residential Solar on Utility Customer Service

What does PV mean for utilities’ residential customer service operations? From helping customers with supplier selection, through installation and maintenance issues? And with billing? To begin to address this question, we conducted two sets of surveys of residential electricity customers in the second quarter of 2016.

Ratemaking and the Campaign Against Rooftop Solar

Rate design should balance consumer and investor interests.

Regulators should ensure that changes to rate design seek to balance consumer and utility interests. Rates that are intended to insulate utilities from economic and technological change while providing no benefits to consumers ought to be considered unjust, unreasonable, and unduly discriminatory.

Line Dividing Regulation and Management

Utility performance, investment versus dividends, rate of return incentives

Generally speaking, regulatory commissions and courts are not anxious to substitute their judgement for that of utility management. A recent example where state regulators found it prudent to gingerly cross the line can be seen in a recent case involving Indianapolis Power and Light Company.

Tax Implications of NEM Successor Policies

Federal income tax treatment has nothing to do with pricing sale of electricity to utility or customer.

Advocates for net metering argue that if the electricity delivered by the customer to the utility is credited at the full retail rate, the amount is not taxable, but if credited at less than the full retail rate, such as under a feed-in tariff or a value of solar tariff, the IRS might count the credited amount as taxable income. A tax expert fills us in on the other side of the story.

The British Electricity Model: 25 Years of Experience

Should We Follow U.K.’s Lead?

British price cap regulation quickly became the international gold standard for regulation. It looked so simple. But if the purpose was to provide a dramatically different and less expensive electricity experience, it failed.

Aggregation 2.0: Evolution of Customer Engagement with Retail Choice?

An innovative approach to targeted retail aggregation.

No state has had the same initial success with municipal aggregation as Illinois, where more than 650 local governments enrolled 70 percent of residential consumers into municipal aggregation contracts. The pathway forward in Illinois provides a model to help get programs off the ground in all retail choice states.

Action by Choice

Time-varying rates is an effective way to satisfy customer demands.

In the 21st century economy pivoted on customer choice, opt-in is the path to tread in the provision of time varying rates to electricity customers.

Getting Past Net Metering

A forward-looking solution to rate reform, for when solar costs hit bottom.

Why keep rate design shackled to the ways of the past, especially at the dawn of a solar revolution?