Naruc Gas Distribution Rate Design Manual

Naruc Rate School 2017

Power distribution line. On the same day as the creation of the new Staff Subcommittee on Rate Design, NARUC President.

NARUC Manual on DER Rate Design and Compensation. Last fall, the National Association of Regulatory Utility Commissioners embarked on a yearlong project to look closely at questions surrounding rate design. They acted in the face of rapidly advancing distributed energy adoption. In the words of NARUC's then- President Travis Kavulla, the goal was to develop a manual that could serve as a resource for commissioners as they . It was charged with developing the manual to assist jurisdictions in navigating the challenges, considerations, and policy development related to compensating distributed energy resources. Figure 1 - Distributed Energy Resources Penetration.

NARUC’s Staff Subcommittee on Rate Design was. Finally, the Manual’s maintains. The manual is important because. NARUC prepared this manual on compensating. The Distributed Energy. The Process Priority: Inspiring Good Rate Design. Gas distribution rate design manual. 1 Chapter II Rates Based on Cost of Service 11 Chapter III Rates Based on Value of Service 29 Chapter IV Cost of Gas. NARUC said that the rate design manual will.

Gas distribution rate design manual. Primer on Rate Design for Residential Distributed. Chair of the NARUC Staff Subcommittee on Rate Design. 1 the NARUC Gas Distribution Rate Design Manual (NARUC Manual) and a. 12 It should be noted that the NARUC Manual does not state that distribution mains. Gas distribution rate design manual. ECE Gas Centre series no.

The manual drew great attention, with over seventy parties providing input on a draft released for public comment last July. And while the manual is intended to serve as a resource for rate design, it also recognizes that the ratemaking process is often said to be more art than science.

The manual provides a great overview of a wide range of distributed energy resources, but also makes clear that there are many related issues that could not be addressed in this initial effort. As the manual notes, . There is no one reported metric that describes distributed energy resources adoption, but we've used the combined capacity of.

The Process Priority: Inspiring Good Rate Design For Our Modernizing Grid « Breaking Energy. New technology is evolving electricity transmission from a centralized, one- way system to a more distributed, interactive one. This system necessitates new electricity rates, and the National Association of Regulatory Utility Commissioners (NARUC) unveiled this week at its annual summer meeting a draft manual that will help states across the U. S. NARUC President Travis Kavulla charged his staff with writing the manual – a monumental undertaking – and we commend the organization for this effort. I was pleased to speak during the Town Hall event at which NARUC rolled out the draft manual, and my remarks focused on one critical need: good rate design process. Choosing the right electricity rate for a state is important, but so too is the process by which regulators arrive at that decision. Early in the document it recognizes, “A jurisdiction will need to identify its current status regarding DER .

NARUC manual’s strengths. Leading up to the summer meetings this week, Environmental Defense Fund (EDF), former public utility commissioners (like myself), and more than 3.

NARUC recommending a common set of principles that each state can apply to identify consensus and get electricity rate design done right for its citizens and businesses. The joint letter identifies six key principles that, to my delight and NARUC’s credit, the draft manual reflects throughout. Here’s where the manual gets it right: Appropriate pace: The draft manual acknowledges that once the quantity of distributed resources (small, grid- connected devices, like rooftop solar and energy storage) passes certain levels, there can be significant issues for traditional rate making, utility models, and delivery of electricity. Our letter to NARUC advises and the draft manual echoes that before responding by changing electricity rates, states should “empirically establish at what adoption level . However, it concludes, “Whatever the implications of these newer rates may be a regulator must be comfortable with how the changes will interact with their jurisdiction’s unique circumstances before implementing them.”Attention to low- income: The draft manual flags electricity- rate impacts on low- income individuals as a special consideration and, in several places, identifies potential impacts of various designs on low- income customers.

It also recognizes that many states implement policies to reduce the burden that low- income customers face. In 2. 01. 4, researchers looked at the “energy affordability gap” for low- income households (the difference between actual energy bills and what is considered affordable) and tabulated it at almost $4. That is an increase of 1. Rate design change cannot further exacerbate this gap and further work needs to be done in this area.

Consumer education: The draft manual finds, “These processes are at the vanguard of an anticipated shift” that represents a “steep learning curve for everyone involved.” It recognizes a role for commissions and consumer advocates in communicating and building consensus for, and acceptance of, change “now and prior to the time any rate design change is implemented.”NARUC manual’s opportunities While I appreciate the process discussions spread throughout NARUC’s draft manual, I see an opportunity to go further and expressly build upon the good process recommendations. For example, a dedicated section in the manual that guides states during electricity ratemaking for our modernizing grid should expressly address the following: How do you establish relevant thresholds for action? What data should be tracked and monitored?

What kind of data should public utility commissions collect? How can utility commissions structure a collaborative process? What tools are available to assess impacts? What methods are available to mitigate impacts on low- income and vulnerable customers?

What are the best practices for pilot tests and customer education? NARUC’s manual is a living document, a first step, offering guidance to states that are transforming our nation’s electricity grid. NARUC is accepting written comments about its draft manual through Sept. EDF’s comments to NARUC will urge specifically integrating good process into the manual, and we hope all stakeholders who play a role in this transition will do the same to help achieve a healthy electricity system and related economies. By Diane Munns Originally Published on July 2.

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