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.

Browse All Posts

From the Knowledge Center

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

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
Policy Brief

Assessing the European Council’s Proposal for Article 7 of the Energy Efficiency Directive

By Jan Rosenow Read now
Policy Brief August 21, 2017

Die Kräfte des Marktes für Energieeffizienz nutzen

By Jan Rosenow Read now
Browse All Research

Events

October52017
Upcoming Event

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

Advanced technologies are unleashing the potential for change in power sectors around the globe, transforming the way electricity is generated, delivered, and consumed. These changes hold great promise for better, cleaner, more reliable and lower cost future. Whether the benefits are achieved will depend on reforming the regulatory approaches to align regulation’s inherent incentives with…

Register Now Learn More