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Is a residential three-part rate the way to a modern grid or bad news for utility customers?

March 13, 2018

Rising penetrations of energy efficiency (EE) and other distributed energy resources (DER) are adding to the downward pressure on utility revenues by allowing customers to generate their own electricity or reduce their usage.

Utilities find themselves caught between their customers’ demand for DER and their own need to cope with reduced electricity sales.They are responding with requests to utility regulators for rate increases that slow the DER growth. “Forging a Path to the Modern Grid: Energy-Efficient Opportunities in Utility Rate Design,” released in February by the Alliance to Save Energy (ASE), proposes a different solution.

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