Abstract
The power grid is transforming from a centralized to a more decentralized network. What has remained largely unchanged is the rate design, which is still mostly static and volumetric, and does not reflective of true costs that its changing users are imposing on the system. In the absence of changes to rate design, the issue of utility’s financial feasibility and death spiral risk remains a real and not just a theoretical concern.Regulators too are facing a unique conundrum to balance the interests of all consumers, accommodate the expectations of new business entrants that provide customer-side solutions, and satisfy utility financial requirements under an overarching goal of netzero commitments by policy makers.
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