Scrapbook Photo 03/25/24 - 93 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/3729bhvv
PUC Issues Proposed Policy Statement On Alternative Ratemaking
Photo

The Public Utility Commission Thursday issued for comment a proposed policy statement inviting fixed utilities to explore alternative ratemaking methodologies in distribution base rate proceedings which further promote federal and state policy objectives, provide incentives to improve system efficiency and ensure that fixed utilities receive adequate revenue to maintain safe and reliable service.

The Commission voted 5-0 to adopt a motion by Vice Chairman Andrew G. Place that presents utilities with a broad range of considerations in developing future rate designs-- including but not limited to performance-based incentives; various levels of decoupling; and variations of demand-based and time-of-use pricing options, such as critical peak pricing.

“Given the evolution of energy markets, I believe it is vital to also evolve approaches to rate design that particularly address energy efficiency trends, as well as increasing demand for electric vehicles, distributed energy resources, such as solar and combined heat and power, and microgrids,” Vice Chairman Place stated.  “Future rate designs should anticipate and support utility technological and economic efficiencies while minimizing long term rates for customers.”

In his motion, Vice Chairman Place highlighted that the changing energy landscape necessitates rate designs that avoid a “one-size-fits all” approach, and are based on the following first-order principles:

-- Policies must support the continued efficient use of all energy resources.

-- The evolution of a distributed energy environment requires substantial and well-targeted investment in distribution infrastructure.

-- Policies must encourage least-cost solutions, with cost recovery based on long-term cost causation.

-- Rate design should embrace, where feasible, the additional capabilities enabled by smart meter deployment.

As noted by the Office of Consumer Advocate (OCA), “costs are variable in the long run.”  Therefore, it may be appropriate for energy utilities to design rates in a manner that minimizes the long-term costs of serving existing and new loads. 

Given the substantial and ongoing Long-Term Infrastructure Improvement Plan (LTIIP) spending by the electric and natural gas utilities, a long-term approach to rate design may be appropriate.

“Today the Commission takes its next step in deliberating the future of utility rates,” added Chairman Gladys M. Brown in a supportive statement.  “The utility landscape is evolving rapidly, none more rapidly than the electricity industry.  I am interested in consideration of rates by our electric utilities which can work to increase distribution system capacity utilization in an effort to foster system efficiency, and, insulate customers from rate increases.”

Chairman Brown further noted that in exploring alternative ratemaking policies, the electricity industry may utilize new technologies - such as advanced metering, advanced grid monitoring, energy efficiency, demand response and smart thermostats - to better accommodate the evolving demand profiles created by the new energy landscape.

Interested parties have 60 days from the date of publication of the proposed policy statement in the Pennsylvania Bulletin to file written comments referencing Docket No. M-2015-2518883 with the Public Utility Commission, Attn:  Secretary Rosemary Chiavetta, Commonwealth Keystone Building, Second Floor 400 North Street, Harrisburg, PA  17120.  Comments may also be filed electronically through the Commission’s e-File System.

NewsClips:

2 Northeast PA Natural Gas Power Plants Totaling 1,805 MW To Go Operational By June 1

Man Accused Of Threatening To Shoot West Penn Power Employees, Students

Don’t Get Snookered Into Switching Electric Suppliers

No Rate Change For National Fuel Residential Customers

Prices Unchanged For Erie Natural Gas Customers

PPL Electric Rates Dropping, A Little

98% Of New U.S. Electrical Generation In Jan, Feb Came From Wind, Solar

Production Cost Of Renewable Energy Now Lower Than Fossil Fuels

Crable: Are Nuclear Power Plants Needed For Long-Term Grid Security?

FirstEnergy Disputes Report Grid Won’t Be Affected By Nuclear Plant Closures

Illinois Energy Law Revives Renewables While Aiding Nuclear

Storage Plan For Spent Fuel Adds To U.S. Nuclear Debate

Frazier: PJM Will Study Fuel Security Of Electric Grid As Natural Gas Use Rises

PJM Grid Operator Throws Cold Water On Trump Nuclear, Coal Bailout

PJM Will Test U.S. Mid Atlantic/Midwest Power Grid For Resiliency

PJM: Closing FirstEnergy Reactors Will Not Destabilize Grid, Launches Probe Into Fuel Security

New York Grid Operator Floats Carbon Pricing Proposal

Related Stories:

House Passes Alternative Ratemaking Bill To Encourage Conservation, Renewable Energy

House Committee Reports Out Local Clean Energy Financing Bill

FirstEnergy Files Letter With NRC Affirming Plans To Deactivate Beaver Valley, 2 Other Nuclear Power Plants

PJM Interconnection Announces Next Phase of Grid Resilience Initiative

FirstEnergy: PJM Study Ignores Value Of Nuclear Plants In Zero-Carbon Emissions Generation

Penn State Students Build Portable Solar Boxes To Help Restore Services In Puerto Rico

FirstEnergy Utility Customers Offered $3,000 Rebate On All-Electric Cars By Nissan In PA

Action Required:

Who Will Be PA’s Official State Amphibian?  The Eastern Hellbender Or Wehrle’s Salamander?  Time To Weigh In

[Posted: May 4, 2018]


5/7/2018

Go To Preceding Article     Go To Next Article

Return to This PA Environment Digest's Main Page