Chapter 10

Residential Rate Design and Death Spiral for Electric Utilities: Efficiency and Equity Considerations

Rasika Athawale
Frank Felder    Center for Energy, Economic, & Environmental Policy, Edward J. Bloustein School of Planning and Public Policy, Rutgers University, New Brunswick, NJ, United States of America

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 ...

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