Understanding the Marginal Costs of Electric Service and Efficient Pricing of Distributed Generation and Demand Response

Los Angeles, CA
16 May 2016 - 18 May 2016
Hosted By: NERA Economic Consulting

Advanced metering and communication infrastructures and the expansion of distributed solar PV generation provide both opportunities for innovation and regulatory challenges. Utilities and energy regulatory commissions are exploring a myriad of options to improve the structure of electricity retail rates as well as to fine tune cost of service methods, in order to ensure that regulatory goals of efficiency, equity, cost recovery, and transparency are met. Now more than ever, reforming residential, commercial, and industrial rates so that they more closely mimic the structure of the various components of cost of service and the marginal costs by time of day will be crucial not only to take full advantage of advanced smart meters, but also to mitigate the growth of intra-class cross-subsidies and encourage economically efficient customer-owned generation investments.

This NERA course, to be held in Los Angeles on 16-18 May 2016, will review sound ratemaking principles and provide an in-depth explanation of best practice methods to develop electricity marginal cost estimates that change with customer, demand and energy, and their application to set robust price signals. The course instructors will examine the pros and cons of different marginal cost estimation techniques and the manner in which studies need to be adapted to take into account specific sector structure. They will review emerging rate reforms of standard retail tariffs and optional pricing mechanisms and discuss best approaches to set rebates to compensate customers for demand response or solar generation. During the course, students will have the opportunity to participate in group exercises related to marginal costing methods and rate design, including the use of marginal cost data to develop class revenue targets.

Course instructors NERA Vice President Amparo Nieto and Special Consultant Dr. Hethie Parmesano are renowned experts in electricity retail pricing design and marginal cost modeling in the US and abroad. Please note that class size will be limited in order to facilitate group participation, so we encourage you to preliminarily reserve your space today.

Should you have any questions about the registration process, please contact Karen Brown at karen.brown@nera.com, or by phone at +1 213 346 3045. 

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