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A 24/7 carbon-free electricity transition tariff is a tool to accelerate decarbonization generally while addressing times and places on the grid where emissions have been most difficult to reduce. 24/7 transition tariffs are different from the green tariffs that match annual consumption with annual renewable energy production; instead, they seek to match a customer’s hourly consumption with deliverable carbon-free electricity provision in each hour of the year.

Throughout 2023, RAP worked with a group of stakeholders to develop guidance on how green tariff programs may evolve to best meet the needs of today’s grid. This effort yielded recently published summary and technical reports, organized around five fundamentals that can help regulators, utilities and customers develop 24/7 transition tariff offerings.

In an interactive webinar, co-authors of the reports explored these fundamentals:

  1. Integrate transition tariff investments with ongoing utility planning.
  2. Ensure accurate hourly emissions tracking and verification.
  3. Design transition tariffs to accelerate complementary investments.
  4. Employ rate design to ensure fairness and to align carbon-free electricity grid needs with pricing and compensation.
  5. Integrate operating systems to implement hourly matching.