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

2 Citations (Scopus)

Abstract

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: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector
PublisherElsevier Inc.
Pages193-209
Number of pages17
ISBN (Print)9780128043202, 9780128042496
DOIs
Publication statusPublished - Mar 10 2016

Fingerprint

Electric utilities
Distributed power generation
Sales
Electricity
Taxation
Costs

Keywords

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

ASJC Scopus subject areas

  • Engineering(all)

Cite this

Athawale, R., & Felder, F. (2016). Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations. In Future of Utilities - Utilities of the Future: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector (pp. 193-209). Elsevier Inc.. https://doi.org/10.1016/B978-0-12-804249-6.00010-5

Residential Rate Design and Death Spiral for Electric Utilities : Efficiency and Equity Considerations. / Athawale, Rasika; Felder, Frank.

Future of Utilities - Utilities of the Future: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector. Elsevier Inc., 2016. p. 193-209.

Research output: Chapter in Book/Report/Conference proceedingChapter

Athawale, R & Felder, F 2016, Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations. in Future of Utilities - Utilities of the Future: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector. Elsevier Inc., pp. 193-209. https://doi.org/10.1016/B978-0-12-804249-6.00010-5
Athawale R, Felder F. Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations. In Future of Utilities - Utilities of the Future: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector. Elsevier Inc. 2016. p. 193-209 https://doi.org/10.1016/B978-0-12-804249-6.00010-5
Athawale, Rasika ; Felder, Frank. / Residential Rate Design and Death Spiral for Electric Utilities : Efficiency and Equity Considerations. Future of Utilities - Utilities of the Future: How Technological Innovations in Distributed Energy Resources Will Reshape the Electric Power Sector. Elsevier Inc., 2016. pp. 193-209
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