5.2.9 Rate Restructuring, Grid Modernization, and Utility Reform

LPDD Recommendation: “State PUCs should restructure rates away from the traditional cost-of-service model.”

LPDD Recommendation: “State PUCs should participate in negotiations concerning the restructuring of utilities away from vertically integrated, investor-owned monopolies focused on selling more kWh to alternative models such as community-owned energy systems or energy service companies decoupling generation from distribution and creating new mandates for working with independent generators.”


See also: community solar and virtual net metering examples, listed under “Ownership Models."

MIT Report, The Future of the Electric Grid

A comprehensive, objective portrait of the U.S. electric grid and the challenges and opportunities it is likely to face over the next two decades.

Nevada’s SB 300 (2019)

Directs state regulators to explore an alternative ratemaking process - including performance incentives, decoupling mechanisms, and earnings-sharing mechanisms - that aligns utility business models with meeting the state's 100% clean energy statute.

MI Power Grid Proceeding

Multi-year stakeholder initiative at the Michigan PUC aiming to maximize the benefits of the shift to clean and distributed energy resources.

RAP report, Electric Cost Allocation for a New Era

Focuses on cost allocation practices for electric utilities and their implications, acknowledging that charting a new path on cost allocation is an important part of creating the fair, efficient and clean electric system of the future.

DC’s MEDSIS proceeding

Considering separate tracks related to data and information access and alignment, non-wires alternatives to grid investments, future rate design, customer impacts, microgrids, and potential Pilot Projects.