Establishing Solar Tariffs in the New Reality of Distributed Generation
ScottMadden has helped a number of utilities develop financial strategies for implementing distributed energy resources. Contact us to learn how we can help support your energy and utility solutions.
At a Glance
Analyzed Cost
Performed a thorough cost analysis to understand financial impact to customers and determine a value for the new solar energy credit
Demonstrated Commitment
Helped the utility demonstrate its commitment to supporting the growth of solar while addressing concerns such as:
- Strains on the distribution system
- Impacts to system reliability
- The need to maintain a method of cost recovery
Developed Solution
Worked collaboratively with the client team to create and deliver an implementable solution in a complex and challenging environment
Challenge
One of the nation’s largest municipally owned electric utilities was facing challenges integrating new distributed solar generation resources into the existing infrastructure. The utility was experiencing a loss of revenue due to a gap in its process for solar tariff cost-of-service allocation. ScottMadden was engaged to provide an evaluation of options for correcting the tariff gap, assistance with segmentation of the customer base, and development of a communication and implementation plan.
Process
- Established a team of experts to develop proposed solutions and evaluate their impact on the customer base
- Performed benchmarking assessment to examine the policies at peer utilities for handling distributed solar resources
- Identified several viable financial strategies for integrating solar resources, including net metering with caps, restructured rates for solar customers or all customers, net revenue loss adjustments, decoupling, and solar value rates/feed-in tariffs
- Determined that developing solar value rates created the best opportunity to recover costs and still promote the value of solar installation for customers
- Performed a thorough cost analysis to understand financial impact to customers and determine a value for the new solar energy credit
Result
- Developed a detailed implementation plan for the rollout of the new program with specific outreach methods for different customer segments
- Successfully assisted the utility in updating its solar program with a logical and defendable pricing position
- Helped the utility demonstrate its commitment to supporting the growth of solar while addressing concerns such as strains on the distribution system, impacts to system reliability, and the need to maintain a method of cost recovery
- Worked collaboratively with the client team to create and deliver an implementable solution in a complex and challenging environment
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We don’t solve problems with canned methodologies. We help you solve the right problem in the right way. Our experience ensures that the solution works for you.