RAP_Icons_v1_Pricing and Rate Design

Smart Rates to Ensure Fair Compensation

Rate design—the framework utilities and regulators use to set prices for the reliable provision of electricity and energy services—influences consumption and investment decisions across the full range of resource choices: energy efficiency, demand response, and traditional and distributed generation. Prices must reflect the true economic costs of providing energy services, which reflect other market and non-market values, such as environmental performance, resource capabilities, and fluctuations in supply and demand over time.

We help utility regulators apply well-established principles to design smarter rates that maximize the value of technology innovations, open up new markets, and accommodate the distribution and diversification of customer-sited generation resources.

Our Focus

Our experts help regulators weigh the benefits, costs, and net value of energy system resources on both sides of the meter, and design rate structures that ensure fair compensation for all who provide energy supply and services. As utility regulators apply the principles that have evolved over a century of regulation to local conditions in their jurisdictions, we advise them to ensure forward-looking rates that maximize the value of investment decisions by both the utility and customers and benefit society overall.

From Our Blog

RAP's experts highlight policy, regulatory, and market solutions to accelerate the clean energy transition.

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From the Knowledge Center

Get our latest in-depth analysis and practical solutions to today's energy challenges.

Policy Brief October 12, 2017

Efficiency First: Reinventing the UK’s Energy System

By Jan Rosenow, Richard Cowart Read now
Presentation October 5, 2017

Performance-Based Regulation: The Power of Outcomes (Part 2)

By David Littell, Camille Kadoch, Jan Rosenow Read now
Policy Brief September 21, 2017

Public Benefit Funds: Finanzierungsmechanismus für Energieeffizienz-Investitionen

By Andreas Jahn, Jan Rosenow Read now
Presentation September 21, 2017

Performance-Based Regulation: The Power of Outcomes

By David Littell, Camille Kadoch Read now
Presentation September 14, 2017

Power Markets in an Era of Low Marginal Costs

By David Littell Read now
Report September 12, 2017

Next-Generation Performance-Based Regulation: Emphasizing Utility Performance to Unleash Power Sector Innovation

By David Littell, Camille Kadoch, Philip Baker, Ranjit Bharvirkar, Max Dupuy, Brenda Hausauer, Carl Linvill, Janine Migden-Ostrander, Jan Rosenow, Wang Xuan, Owen Zinaman, Jeffrey Logan Read now
Presentation September 12, 2017

Non-Traditional Regulation: A Survey

By Frederick Weston Read now
Presentation September 12, 2017

Into the Brave New World of Consumer Protection Policy

By Janine Migden-Ostrander Read now
Policy Brief August 30, 2017

Regional Operational Centres: A review of the Commission’s proposal and recommendations for improvement

By Philip Baker, Julie Finkler, Christos Kolokathis Read now
Fact Sheet August 29, 2017

Fixed charges impede progress & drive up costs of the clean energy transition

By Christos Kolokathis, Michael Hogan Read now
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Events

October252017
Upcoming Event

Regionalisation of European electricity markets needs a more regional approach (Webinar)

The European Commission’s proposal to establish regional operational centres (ROCs) is a welcome step toward further integration of the EU internal electricity market. Yet, by expanding this proposal, policymakers could improve governance and the remit of the ROCs to ensure a truly regional, coordinated approach to efficient operation of Europe’s highly interconnected transmission system. Join Philip Baker…

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