Sustainable Rate Design for a Modern Grid
Equitable rate design principles stipulate that customers should be able to connect to the grid for no more than the cost of connecting to the grid, they should pay for grid services and power supply in proportion to how much they use and when they use it, and those supplying power to the grid should be compensated fairly for the value of the power they supply. At a time when the United States is experiencing exponential growth in on-site power generation and sinking prices for solar photovoltaic (PV) installations, these principles are critical. At a meeting of the New England Restructuring Roundtable, Rich Sedano previewed a forthcoming RAP report examining the nuances of rate design options for the modern grid. He encourages regulators and utilities to bring into balance rates that focus too heavily on utility needs and are not sufficiently considerate of customers and their needs. With the trend toward greater automation, customers will have more choices than ever—choices that can provide value to the power system.