The U.S. map below indicates where general rate cases are active as of September 30, 2016. Scroll over any state to reveal which investor-owned utility (or utilities) are currently involved in a rate case in that state.
Through the rate-case process, dozens of U.S. utilities have proposed changes in recent years that would erode the value of customer-sited distributed generation (DG), as well as energy efficiency and energy conservation. These proposals include:
- Raising the monthly fixed charge for certain types of customers (often by more than 25%), while also reducing volumetric (i.e., kWh) charges
- Imposing a demand charge and/or other fees on DG customers, including solar generators
- Creating a separate customer class for DG customers
- Eroding the value of net metering -- or eliminating it altogether
Twelve utilities filed new rate cases in Q3 2016. Of those utilities, all but one proposed raising their monthly fixed charge for residential customers (Figure 1). Eight utilities proposed raising their residential fixed charge by 40% or more, with two utilities -- Alaska Electric Light & Power and Alaska Power Company -- proposing to raise their monthly fixed charges for residential customers by more than 60%. Notably, OG&E proposed a new default rate for residential customers in Arkansas that includes a demand charge.
FIGURE 1: Proposed Residential Fixed-Charge Increases Rate Cases Filed in Q3 2016
Source: EQ Research
Of the 10 rate cases decided in Q3 2016, state regulators approved higher fixed charges for residential customers in all cases, although most approved increases were relatively modest. Somewhat bizarrely, regulators in Tennessee approved a higher monthly fixed charge ($12.63) for residential customers than what Kingsport Power actually initially proposed ($11.00).
FIGURE 2: Existing vs. Proposed vs. Approved Residential Fixed-Charge Increases Rate Cases Decided in Q3 2016
Source: EQ Research
FIGURE 3: Existing vs. Proposed vs. Approved Residential Fixed-Charge Increases, Q3 2016
Source: EQ Research
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In partnership with EQ Research, GTM Squared brings you a series of visualizations that map, graph and chart issues important to the clean energy industry across the U.S. These visualizations will be updated quarterly and serve as an up-to-date resource for Squared members.
