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April 30, 2020
Brattle Economists Author Article on Tariff Reform

After the California energy crisis in 2001–2002, focus was placed back on tariff reform and creating a better connection between retail and wholesale electricity markets. Brattle Principal Ahmad Faruqui and Senior Research Analyst Cecile Bourbonnais discuss the future of time-of-use rates in an IEEE Power and Engineering Magazine article.

The cost of power to utilities and the rate structures that currently exist are misaligned. Utilities are seeking to develop tariffs that adhere to the five key criterion: economic efficiency, equity, revenue stability, bill stability, and customer satisfaction. As technological advances begin to clear some of the barriers to tariff reform, utilities will be better positioned to develop, study, and roll out improved tariffs for customers.

The full article, “The Tariffs of Tomorrow: Innovations in Rate Designs,” is located on the IEEE Power and Engineering Magazine website (paywall).