by Graeme » Mon 10 Feb 2014, 18:34:23
Thanks to all contributors here. It's very healthy to see such a wide array of solutions. I know there is a lot more in cyberspace. I tried to find other references on this subject and found this
comparison. I was surprised to see that California is already planning to introduce both (not sure when this was written 2010?).
$this->bbcode_second_pass_quote('', 'T')o meet the 33 percent renewable energy goal, California will need a mix of centralized, large-scale projects as well as localized renewable energy generation, such as from solar panels on large buildings or along highways. In his campaign platform for achieving a broader renewable energy portfolio, Governor Brown called for 8,000 new megawatts of renewable energy from large-scale facilities and 12,000 megawatts of localized generation, out of the approximately 20,000 megawatts needed to meet the 33 percent RPS. This logically extends the policies of Governor Brown’s predecessor Gov. Schwarzenegger, who began the process with the ‘Million Solar Rooftop’ policy and legislation
Apparently, utilities do feel under threat by distributed solar but there are possible solutions to this.
Want to Sustain Utilities? Decouple Profits from Revenues, Assign Costs Where they Belong and Enable Customers to Make Smarter Energy Choices$this->bbcode_second_pass_quote('', 'T')he tally of utilities and governments around the world imposing or boosting fixed charges for grid-supplied electricity is rising to make up for the decline in traditional, rate-based revenue. In the U.S. this has been due primarily to ever-improving energy efficiency and the end of year-to-year increases in electricity usage. Now, the demand curve looks to stay flat or even head south due to distributed generation, particularly rooftop solar.
Think about it. Effectively penalize customers by slapping them with a charge that has little, if anything, to do with how much of a product they use. If regulators, energy utilities and policy experts today were designing rules for the first time, would anyone want to reward increased energy consumption that puts a heavier burden on, and grows the risks to, civil society and national economies? I think we can all agree the answer would be no.
The overarching issue here is not new. Debates have raged for decades over how to enable utilities to earn money from energy efficiency programs. A growing number of states, led by California, have made significant strides and there are many lessons to share. I’m on a constant outlook for fresh ideas that deal with the realities of how energy utilities are regulated and the reliance on the status quo by consumer advocates and much of the industry relying on a 100+ year-old business model.
Now there are challenges that utilities need to be compensated for in all rate structures. I’m talking about the need for cleaner generation portfolios, infrastructure improvements and defenses against cyber security threats. But they can be dealt with prudently while maintaining incentives to use less energy and reduce dependence on the grid. The means to think proactively are all around us if regulators and stakeholders commit to it. There are several examples to draw from to illuminate what’s working and what’s not.
At this week’s winter meetings of the National Association of Regulatory Utility Commissioners (NARUC) in Washington, the Committee on Consumer Affairs is searching for “real solutions to real challenges”. They’re grappling with questions such as, “Will consumers dictate what services they are provided in the future?” Fixed charges were not overtly on this agenda although distributed generation is considered a "critical issue" a NARUC committee is studying.
Thus far, about half the U.S. states have decoupled utility profits from revenues in ways that don’t rely too heavily on fixed charges. See adjacent map. The onus is on the remaining half – especially in the electricity sector – to follow suit.