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Distributed Energy Resources Rate Design and Compensation

Distributed Energy Resources Rate Design and Compensation

Full Title: Distributed Energy Resources Rate Design and Compensation
Author(s): NARUC Staff Subcommittee on Rate Design
Publisher(s): National Association of Regulatory Utility Commissioners
Publication Date: November 1, 2016
Full Text: Download Resource
Description (excerpt):

This Manual is organized to provide regulators with a comprehensive understanding of the question of how does DER affect regulation. It lays out a background on the principles of rate design and compensation, the availability and use of new technologies, an explanation of what is DER, and describes a set of certain types of DER. This is to provide a regulator ample background of not only how DER impacts existing regulatory and utility models, but also provides a foundation for considering how to evolve along with this transition. The Manual then describes a variety of rate design and compensation options that a jurisdiction may consider—the options described herein are not the only ones available to a jurisdiction, but are the most prevalent under discussion today. The Manual goes through them laying out the pros and cons of the option, and providing regulators with information to assist them in their consideration. Lastly, the Manual outlines a few practical ways for it to be used, including examples of determining costs and 6 benefits of DER, questions for a regulator to support an investigation into appropriate rate design and compensation for DER, and how to use some of the details in this Manual to support a decision-making process.

All statements and/or propositions in discussion prompts are meant exclusively to stimulate discussion and do not represent the views of, its Partners, Topic Directors or Experts, nor of any individual or organization. Comments by and opinions of Expert participants are their own.

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