Advancing Customer Resources in an Evolving Power Sector
As the power sector evolves to include more distributed customer generation, regulatory practices are shifting to keep pace with the changes. In an address to the Midwest Energy Efficiency Alliance (MEEA), Carl Linvill stressed the importance of ensuring that rate designs, tariff designs, and cost-benefit analyses reflect the full value of customer resources and compensate all parties fairly. Effective rate design allows customers to connect to the grid for no more than the actual cost of connection, ensures that customers only pay for the grid in proportion to their actual usage, bases customer charges on the time and duration of the grid services used, and compensates customers at full and fair value for the power they deliver to the grid. Mr. Linvill also highlights the need to ensure that non-participating consumers are charged fairly for the value of the services they receive.