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.