The Alliance to Save Energy moves forward with unanimous vote on utility rate design principles

Published on November 04, 2016 by Daily Energy Insider Reports

The Alliance to Save Energy and a team of utility and energy efficiency interest groups voted unanimously to adopt a set of core principles that would guide their efforts to shape utility rate designs.

The Rate Design Initiative seeks to develop innovative rate designs that encourage efficiency and responsibility in energy usage, while working to address adequate cost recovery for utilities.

“What we’re trying to do is bring all the parties to the table to come up with models for how we can meet these broader societal goals of incentivizing efficiency and delivering cleaner, more reliable power while also making sure that the economics are structured so that consumers are protected and utilities can adequately recover their fixed costs,” Kelly Speakes-Backman, senior vice president at the alliance, said.

The core principles of the group’s work were agreed upon by a number of companies, including Exelon Corp., National Grid, Pacific Gas & Electric Co., Southern Company and Washington Gas.

The alliance is moving towards the completion of four rate design templates that would be complete by next summer.

“It’s a bit of a puzzle that people have been wrestling with for years, but there are some great ideas out there for how we can be smarter about how we’re consuming and paying for electricity. Particularly with all the innovation going on with smart meters, timed appliances and other new technologies, we felt it was time to bring everyone together and try to find some consensus for moving forward in today’s regulatory environment.”