Advancements in technology—distributed generation, electric vehicles, and “smart” appliances, combined with advanced metering infrastructure and more sophisticated utility monitoring systems—will both demand and allow a more refined method of designing the rates charged to customers. Traditional flat ($/kwh) rate design no longer serves consumers or society best. A more progressive approach with bidirectional rates and time-varying—and, ultimately, dynamic—elements can help jurisdictions meet environmental goals and minimize adverse social impacts, while allowing utilities to recover their authorized revenue requirements.
During this webinar Jim Lazar and Janine Migden-Ostrander of RAP, and Wilson Gonzalez of Tree House Energy and Economic Consulting, discuss the profound impact that different rate designs have on the choices made by customers, utilities, and other electric market participants. Drawing from the paper Smart Rate Design for a Smart Future, they highlight smart rate designs that effectively balance all major interests, provide a framework for stable regulation of utilities, and enable the growth of renewable energy and energy efficiency to meet electricity requirements.
For more RAP webinars about rate design, see Demand Charges: Pathway or Detour, Fundamentals of Electric Rate Design, and Cost Allocation – The Transition from Cost to Rates.