Myon Katz, Brendan JM, Richard T and Syed AA
In this paper, we discuss innovative electricity pricing rate design as a solution to a problem brought about by an “Old Utility Model,” namely the problem of ratepayers shifting, or dumping, cost onto other electricity ratepayers. The solution involves time-of-use pricing, smartly implemented new technologies, and an updated “Utility of the Future “model that turns ratepayers from consumers to prosumers alongside a rate design that incentivized deep investments into DER (Distributed Energy Resources), energy efficiency and storage, such as whole-home batteries, while taking advantage of the practice of net metering.
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