The Art of New Rate Introduction

Deck: 

Changing Customer Attitudes

Fortnightly Magazine - April 2021
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I do not like your new rate plan!

In board rooms across the country, utility executives agree with the need to move from volumetric pricing models to some form of time-based or demand model. These executives know that the growth of distributed energy resources, particularly rooftop solar, is causing a misalignment of electricity price with the cost to produce and deliver it. 

This article offers some straightforward insights into the art of introducing new rates whatever you decide to do. The key elements are to first start the education and communication efforts to engage regulators, customers, and intervenors in your reasoning. Then offer at least two easy to understand plans and support those with customer advisory support to minimize fears over choice. 

But, in every case, pay special attention to explaining seasonal differences that while small are directionally inconsistent with annual results. Very simply, watch out for how these choices impact customers in the spring and fall! They may save overall, but they are likely to drop out or complain bitterly if they are forced to stay on that rate plan.

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