Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations

Rasika Athawale, Frank Felder

Research output: Chapter in Book/Report/Conference proceedingChapter

4 Citations (Scopus)


Nearly flat growth in US electricity demand, combined with policies to increase distributed generation, have resulted in concerns of revenue "death spiral" for electric utilities. Redesigning rate structures in response to high penetration of distributed generation creates both efficiency and equity considerations. This chapter explores these considerations in the context of New Jersey that has three policy elements: aggressive solar mandates, net-metering, and recovering almost all fixed costs for residential consumers through volumetric rate. Winners and losers are projected under possible scenarios of rate adjustments, along with effects on the collection of Sales and Use Tax on sale of electricity.

Original languageEnglish
Title of host publicationFuture of Utilities - Utilities of the Future
Subtitle of host publicationHow Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector
PublisherElsevier Inc.
Number of pages17
ISBN (Electronic)9780128043202
ISBN (Print)9780128042496
Publication statusPublished - Mar 10 2016


  • Distributed resources
  • Electricity tariffs
  • Net-metering
  • Rate design

ASJC Scopus subject areas

  • Engineering(all)

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