This Utility Dive article summarizes a report AEE Institute released jointly with Rocky Mountain Institute and America’s Power Plan offering 10 options for utility business model reform and five accompanying case studies. Link to the full article here and the press statement here.
Excerpts of the UD story are below:
A report jointly produced by the Rocky Mountain Institute (RMI), America’s Power Plan (APP) and Advanced Energy Economy Institute, examines 10 business model reform options utilities may consider as they modernize their grids and respond to new regulatory directives and customer preferences for clean energy.
The 10 options range from revenue decoupling to performance-incentive mechanisms and other concepts, some of which have already been proposed. The report also includes a set of case studies of utility business model reforms…
The largest segment of reform options includes modifying the traditional cost-of-service model, with four alternatives identified: revenue decoupling, multi-year rate plans, shared savings mechanisms and performance incentive mechanisms…
Many of the options discussed are already being tested. Hawaii is moving to implement performance-based regulation by 2020, looking to break the link between utility revenues and capital investments. Minnesota is also looking toward performance-based ideas. Utilities in New York have been focused on facilitating third-parties providing energy services, and the transition to a platform provider-based business model.
Continue reading the UD story here and download the case studies here.