Smart Non-Residential Rate Design – Apr 11

Commercial and industrial utility customers have the opportunity to use power sector innovations to reduce their energy bills and produce services for the grid. Distributed energy resources, advanced power control technologies, and smart metering can produce private benefits for these customers, but regulators need to know whether the investments will also promote the public interest: Will they reduce system costs and produce benefits for all customers? The answer depends on rate design, and unfortunately non-residential rate design is not well aligned with system needs and system value in many states.

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