A Paradigm Shift in Rate Design

Deck: 

CAMPUT

Fortnightly Magazine - June 2024
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This panel at CAMPUT 2024, Incentivize and Optimize: A Paradigm Shift in Rate Design, discussed new approaches to rate design. How can the abundance of data now available be used to inform decision making? How can or should rate design influence customer behavior to optimize the use of energy resources and the energy transition?

Regulatory leaders brought together for this discussion were The Brattle Group Principal Sanem Sergici, BC Hydro Chief Regulatory Officer Chris Sandve, Enbridge Gas Manager of Regulatory Applications Anton Kacicnik, and Ontario Energy Board Chief Corporate Services Officer Carolyn Calwell.

 

Moderator and Ontario Energy Board's Carolyn Calwell: The principles that inform our understanding of what is just and reasonable, were articulated in 1961 by James Bonbright and colleagues, who wrote the book on "Principles of Public Utility Rates."

Bonbright identified attributes of a sound rate structure, including practicality, freedom from controversy, revenue and rate stability, fairness, avoiding undue discrimination, and economic efficiency. Our panelists will explore how those principles hold up in the face of the energy transition and as we consider a paradigm shift.

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