Easing the Transition to a More Distributed System

This report highlights the need to update the “regulatory compact” between utilities and society to incorporate new technologies, particularly distributed energy resources. It provides a succinct history of utility business models and highlights the changes in technology that necessitate updating the “compact.” The report details five areas in which utility regulators can encourage the deployment of cost-effective distributed energy resources: reformed cost recovery proceedings, rate design, more holistic resource planning, better data access, and improved grid access.