Report | 2014

Executive Summary: Rate Design for the Distribution Edge: Electricity Pricing for A Distributed Resource Future

By Devi Glick

The U.S. electricity system is on the cusp of fundamental change, driven by rapidly improving cost-effectiveness of technologies that increase customers’ ability to efficiently manage, store, and generate electricity in homes and buildings. With growing adoption of these technologies, the electricity system is shifting toward a future in which the deployment and operation of distributed energy resources (DERs) will have far-reaching implications for grid operation, investment, and security.