Pricing

Response to Mitnick Re: What Consumers Want

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.
Byline: 

Richard Pierce, Jr.

Read Entire Article

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.
Byline: 

Ari Peskoe

Read Entire Article

Regulators Can Win the Trifecta with Residential Demand Charges

Advanced metering and demand charges give efficient and equitable price signals to customers.

The wide deployment of smart meters gives regulatory policy-makers a rare opportunity to change residential rate design. This can be done in a way that improves economic efficiency, and utility consumer and shareholder equity. Here we provide ten questions that should be asked by policy-makers, as well as some guidance in deriving the answers.
Byline: 

Ross C. Hemphill and Kenneth W. Costello

Read Entire Article

The Consumer-Centric Utility

Empowering Consumers while Managing Risk and Optimizing Assets

Electric utilities do not simply sell a commodity. They sell safe, affordable, reliable and clean electric service. The “Consumer-Centric Utility” business model provides a viable framework for utilities while enabling new products and services that meet growing consumer expectations.
Byline: 

Jan Ahlen

Read Entire Article

Getting Berned

What’s the price tag of banning fracking?

Ironically, a ban on fracking would increase coal generation, which emits carbon dioxide at twice the rate of gas generation.
Byline: 

Steve Huntoon

Read Entire Article

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.
Byline: 

Alex Zakupowsky

Read Entire Article

Consumers Want What?

Rather than accept the rhetoric, let’s find out.

What’s missing is asking consumers to consider realistic tradeoffs between two characteristics of electricity rather than the desirability of a single characteristic in isolation.
Byline: 

Steve Mitnick

Read Entire Article