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February 25, 2016
Neil Lessem to Present in Edison Electric Institute Grid Talk Webinar

Neil Lessem will be presenting at an Edison Electric Institute (EEI) Grid Talk Webinar on Thursday, February 25. Dr. Lessem will summarize a paper he jointly authored with Brattle economists Ahmad Faruqui and Ryan Hledik, and the EEI on rate design under increasing penetration of residential Distributed Generation (DG). The paper was originally submitted to the National Association of Regulatory Utility Commissioners (NARUC) New Staff Subcommittee on Rate Design.

The utility industry is investing more than $20 billion annually in the grid to better integrate distributed generation and to enhance reliability and resiliency, and rates are an important part of this process. The paper identifies various options that update the current DG rate policy of net metering policies. These include: demand charges; buy-sell arrangements; fixed monthly charges; time-varying rates; capacity charges; installed capacity fees; DG output fees; interconnection fees; minimum bills and standby rates. This review of options is followed by a summary of actual case studies, drawn from a review of regulatory practice in 14 states with references to source documents.