Electricity Policy

Wed04262017

Last updateThu, 16 Mar 2017 7pm

ISSN 2331-1223  Twitter

Getting the Most from Grid Modernization

By Sonia Aggarwal and Mike O’Boyle

Unlike competitive markets, traditional cost-of-service regulation of monopoly electric utilities puts much of the risk of making poor investments on captive customers, rather than utility shareholders. The program design ideas below can help ensure that the risks and rewards of grid modernization investments are shared fairly between these groups.
A

s states consider new utility investments in modernizing the grid, state regulators need some way to ensure that utilities maximize the potential benefits of grid modernization fairly and in a timely fashion.

 

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