5.6.7 Customer Behavior Strategies

LPDD Recommendation: “States should adopt incentives that enable customer behavior/investment choices, including decoupling, customer demand response, and deployment of smart metering.”

X-Cel Energy’s Time-of-Use Pilot

Minnesota’s PUC approved a time-of-use pilot program proposed by X-Cel Energy expected to drive greater use of renewables and reduce peak demand. The two-year, 17,500-customer plan is intended to use three price tiers and drive more off-peak use.

National Grid RI’s Advanced Metering Developments

In November 2017, National Grid filed a plan to implement an opt-out time varying rates program by 2022. In August 2018, the Commission requested development of the advanced metering functionality deployment plan that would support the rates.

Tucson Electric Power’s Time-of-Use Rate

Tucson Electric Power in Arizona received received approval for a new optional time-of-use rate which became the default rate for new customers starting in January 2019.

California Time-of-Use Rates Order

A 2015 Commission Order established time-of-use rates across California by 2019. California’s time-of-use rates apply to all commercial, industrial and agricultural customers by default.

Massachusetts’ Grid Mod Investment Order

The Dept. of Public Utilities issued a 2018 Order authorizing utilities to make $220 million in investments in grid modernization technologies over three years to upgrade their distribution systems.

Boulder CO’s SmartGridCity Project

Xcel Energy embarked on a large-scale project known as SmartGridCity in 2008, including installing two- way fiber-optic communication technology and smart meters for one quarter of the population.

Rhode Island’s Decoupling Law

Senate Bill 2841A decoupled utility profits from utility sales volume to remove disincentives to energy efficiency and demand reduction measures.

Report, 2025 California Demand Response Potential Study

Concluded that well-designed time-of-use rates could also optimize the use of DER for grid services and limit investments in natural gas infrastructure that could become stranded as renewables prices fall.

Report, Getting More Granular

Analyzing how time and location-specific values may change the economics for distributed energy projects.

RAP Rate Design Resources

The Regulatory Assistance Project develops knowledge and best practices pertaining to rate design, including specific resources on time of use rates.