An increasing number of residential customers are installing solar PV panels on their roofs. Installing these panels leads to dramatic reductions in both the customers’ energy consumption and power bills; however, the fixed cost of serving them does not drop proportionately, which creates a cross-subsidy between customers. Dr. Faruqui analyzed Northwestern Energy’s proposal to remediate the cross-subsidy and restore equity between customers, and benchmarked the proposal against best industry practices.

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