rate design

Good Ratemaking is Hard to Do

Especially in today’s politically charged environment

Trying to use ratemaking to address an increasing number of social issues intensifies the difficulty for regulators to reach a balanced outcome. Net metering stands out as economically inefficient, unfair and a regressive cross-subsidy, essentially an implicit tax on non-solar customers.

Rate Structure Philosophy

Rate design will need to become more flexible, more duly discriminatory, more tailored to the diversity of consumers

Not many know fixed charges are there to cover utilities’ invariant costs for keeping up the grid, and can be half of all costs.

Rethinking Regulation

Not so Fast: Why the Electric Industry May be Heading in the Wrong Direction

Utility regulation will often display the power of special interests, which may only appeal to a narrow set of interests. Public officials need to step and serve the broader public.