Manual on Distributed Energy Resources Rate Design and Compensation

This National Association of Regulatory Utility Commissioners (NARUC) manual is intended to support and help jurisdictions understand, plan for, and develop appropriate policies associated with the growth of distributed energy resources (DERs).

Manual

DER Rate Design and Compensation (NARUC, 2016) The primary aims of this document are to help regulators  identify issues related to DERs and answer questions in a way most appropriate for their jurisdiction.

Topics Covered

This manual includes:

  • Enabling technologies for integrating DERs (Chapter III.C)
  • DER considerations, questions, and challenges, including cost and benefits
  • Customer and utility impacts.

Key Takeaways

Often, discussions on DERs are made more difficult because of the current regulatory framework and utility incentives, which have been in place for many decades, being challenged (disrupted) by these new technologies.

Identifying and understanding the challenges brought about by the increase in DERs and the lack of concomitant load growth will assist the regulator in determining an appropriate rate design to implement for its utilities.

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