RATE DESIGN INITIATIVE
Launched by the Alliance to Save Energy, the Rate Design Initiative is aimed at uniting key stakeholders around innovative rate designs that incentivize energy efficiency and other environmental goals while also addressing adequate cost recovery for utilities. The initiative could ultimately shape the way millions of Americans use and pay for energy in their homes.
The effort launched in May 2016, starting with a group of leading utility companies and efficiency businesses. The group – including Exelon, Ingersoll Rand, Johnson Controls, Lockheed Martin, National Grid, Pacific Gas & Electric, Schneider Electric, Southern Company, Washington Gas and Whirlpool – successfully completed the first round of negotiations in October 2016 around a core set of principles guiding the work.
With the principles completed, the initiative’s participants will grow to include regulatory experts, environmental groups, consumer advocates and other industry leaders and advocates to continue building consensus and develop more specific regulatory and policy recommendations. The goal of the initiative is to develop four rate design templates that can be used as guides for rate cases across the country that appropriately balance utility cost recovery with incentives for energy efficiency, reliability, and environmental performance.