Especially in today’s politically charged environment
National Regulatory Research Institute
Advanced metering and demand charges give efficient and equitable price signals to customers.
A survey sample of regulators on their dealings with peers, colleagues, staffers, and stakeholders.
Why deregulation is easy and reregulation is hard.
Even with convincing evidence that deregulation has failed to deliver promised benefits, efforts to restore public oversight face tough resistance. The reasons involve policy inertia—and blind faith in free markets.
Michigan chafes over regional grid planning, providing a policy lesson for the feds.
High prices have turned Michigan against regional planning -- a possible foretaste of what to expect under FERC Order 1000.
Lacking regulatory oversight, financial hedges turn into risky speculation.
A purposeful approach to setting energy prices.
Changes in regulatory requirements, market structures, and operational technologies have introduced complexities that traditional ratemaking approaches can’t address. Poorly designed rates lead to cross-subsidies, inequitable outcomes, and perverse incentives. An objective-based approach can better communicate costs to customers in a way that better serves operations and policy goals.
Planning ahead in a low-cost gas market.
IIt’s ironic that in today’s market, as the cost of hedging against commodity price increases has declined, support for utility hedging programs has sunk to a historic low. The ideal time to hedge is when prices are low and markets are relatively calm, because that’s when hedging costs and risks are the lowest. Conversely, waiting until prices rise and markets become volatile will expose customers to higher costs. Convincing regulators to approve hedging programs now will require a collaborative approach to educating and enlisting support from stakeholders.
Achieving the smart grid’s potential requires a revolution in electricity pricing.
Achieving the smart grid’s potential requires a revolution in electricity pricing. Smart metering and smart rates might yield surprising and beneficial changes in the U.S. utility industry. But capturing those benefits will require an intelligent and careful approach to implementing dynamic pricing.
Recent electricity pricing argues for faster, more extensive deregulation.
Was restructuring a success? Prices provide a dispassionate analysis, showing that restructuring was poorly designed, badly executed, and focused on the wrong part of the grid. With those lessons learned, it’s time to explore ways to move forward.