December 15, 2020
Policy Primer: Utilities Are Reshaping Rate Design Strategies
New rate designs draw increased attention as utilities attune to policy and technology changes driven by decarbonization efforts.
The growing adoption of clean energy standards, energy efficiency, and customer-sited resources is driving the need for innovative ratemaking principles. Utilities are exploring rate structures that facilitate the integration of variable and distributed generation, and align customer behavior with grid needs. Smart meters are paving the way for time-based and dynamic rate options to balance the grid under the increased penetration of renewable and distributed energy resources, as well as electric vehicles.