Pricing

Residential Demand Charges: Bad Choice

Time-of-Use is a Better Reform

Utilities go too far in their proposals to recover capacity costs from rooftop solar customers who self-generate. The affirmative case for Time-of-Use tariffs that reflect marginal costs is strong for all customers.

Rethinking Rationale for Net Metering

Quantifying Subsidy from Non-Solar to Solar Customers

A thought-provoking call for fact- and principle-based policy on the controversial net metering matter. From three respected co-authors from diverse backgrounds.

Response to Cicchetti Re: Net Metering

A response to the letter by Charles Cicchetti in our April 2016 issue, which was a response to the letter by Ashley Brown in our February 2016 issue.

As Ashley Brown correctly stated in his letter, large-scale solar projects produce electricity at roughly half the cost of that produced by rooftop solar. Charlie states that customers installing rooftop solar are: “… paying to reduce dependence on greenhouse gases and to expand societal benefits ....” Not exactly.

Competing Perspectives on Demand Charges

Survey of consumer advocates identifies areas of agreement and disagreement

This article summarizes perspectives on both sides of the demand charge issue. Based on this review, it proposes practical initiatives to address key concerns about residential demand charges.

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.

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.

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.

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.

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.