Innovative Ratemaking Treatment for Distributed Generation
Synapse Energy Economics and the Regulatory Assistance Project, under a contract with the California Energy Commission (CEC) and the National Renewable Energy Laboratory (NREL), undertook to survey state policy on rates for partial requirements customers. We reviewed more than a dozen states, diverse both in their geography and in the structures of their electric industries. Through review of regulatory proceedings, tariffs, publications, and interviews, we identified a number of approaches to stand-by and associated rates that deserve policymakers' attention if they aim to promote the deployment of cost-effective distributed generation in their states. Project completed in December 2005.