A Look Ahead to Proliferating Customer Generation
As customer generation trends upward, the effects on regulation and utilities are likely to be profound. Rich Sedano addressed this topic at a meeting of the New Hampshire Energy Efficiency and Sustainability Board. He outlines a framework for considering customer generation that explains the types of distributed generation, the forces driving this growth as well as those that can stifle growth, system integration challenges, and implications for regulators and for the utility business model. The trend of generation on customer premises is part of larger trend of more engaged and grid integrated customers animated by technology and the opportunity to satisfy personal objectives and create new personal and societal value. Previously accepted inefficiencies in regulation will be harder to tolerate because customers receive the most value where prices reflect underlying costs and where regulation avoids unnecessary hurdles.