Robert Walton, Utility Dive
Summary
Pretty much everything else in the utility sector is changing — why not rate designs?
On a motion by PUC Vice Chairman Andrew Place, the commission asked utilities to consider a broad range of concepts, including performance-based incentives, various levels of decoupling, and variations of demand-based and time-of-use pricing options, such as critical peak pricing.
“Given the evolution of energy markets, I believe it is vital to also evolve approaches to rate design that particularly address energy efficiency trends, as well as increasing demand for electric vehicles, distributed energy resources, such as solar and combined heat and power, and microgrids,” Place said in a statement.
The next generation of rate designs should "anticipate and support" utility technological and economic efficiencies, he said, "while minimizing long term rates for customers.”
The commission will hold a 60-day comment period.
Regulators say utilities can look to new technologies in developing new rate structures, such as advanced metering, advanced grid monitoring, energy efficiency, demand response and smart thermostats.
In addition to new rate designs, the commission is looking at several changes representative of the evolving utility sector. New rules governing third party electric vehicle charging are meant to bring certainty and clarity to the new industry.
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