Rate Design Working Group Community Page 2019-06-14T19:29:43+00:00


Rate Design Working Group Community Page


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Working Group Purpose

The Rate Design Working Group will discuss rate structures and alternative rate designs and regulatory models to enable and support the advancement of the MEDSIS vision while maintaining just and reasonable rates. The Group will:

  • Investigate alternative rate design and regulatory models for the purpose of achieving the MEDSIS vision
  • Evaluate alternative rate designs and regulatory models with respect to, among other things, fundamental principles of ratemaking (e.g., cost causation, rate gradualism, etc.) as well as their effect on DER adoption

Key Questions to Address

  • What alternative rate designs can be used to achieve the MEDSIS vision?
    • What are the pros and cons of each?
    • What incremental steps can be taken to progress towards the vision?
    • Should rate structures and designs differ among rate classes?
  • How can alternative rate designs and regulatory models align the utility’s business model with the MEDSIS vision while allowing the utility to maintain financial health and also promote cost savings?
    • How can cost savings for customers be aligned with utility earnings (win-win)?
    • What mechanisms would work best in the District?
    • How can rates drive utility behavior and MEDSIS objectives?
  • How can existing programs, incentives and tariffs be coordinated to maximize the locational benefits and minimize the costs of DERs? What role does rate structure & regulation have in maximizing benefits and minimizing costs?
Working Group Name Date Time (eastern) Agenda Meeting Minutes Mtg. Location
WG3: Rate Design 8/21/18 9-12PM WG3_Mtg1 WG3_Mtg1 Commission Hearing Room
WG3: Rate Design 9/20/18 9-12PM WG3_Mtg2 WG3_Mtg2 Commission Hearing Room
WG3: Rate Design 10/23/18 1-4PM WG3_Mtg3 WG3_Mtg3 Commission Hearing Room
WG3: Rate Design 11/15/18 9-12PM WG3_Mtg4 WG3_Mtg4 Commission Hearing Room
WG3: Rate Design 12/11/18 1-4PM WG3_Mtg5 WG3_Mtg5 Commission Hearing Room
WG3: Rate Design 1/16/19 9-12PM WG3_Mtg6 WG3_Mtg6 Commission Hearing Room
WG3: Rate Design 2/21/19 9-12PM WG3_Mtg7 WG3_Mtg7 Commission Hearing Room
WG3: Rate Design 3/20/19 9-12PM WG3_Mtg8 WG3_Mtg8 Commission Hearing Room
MEDSIS Report Workshop Day 1  4/25/19 9:30-4:30PM Joint Mtg Agenda Joint Mtg Day 1 Commission Hearing Room
MEDSIS Report Workshop Day 2  4/26/19 9:30-4:30PM Joint Mtg Agenda Joint Mtg Day 2 Commission Hearing Room
WG3: Rate Design 5/15/19 9-12PM WG3_Mtg9 WG3_Mtg9 Commission Hearing Room

WG3: Rate Design

Working Group Charter

Version 1.0 – Sep 19, 2018

1.0 PURPOSE AND SCOPE

The primary function of the Rate Design working group (the “Group”) is to assist the District of Columbia Public Service Commission (the “Commission”) in fulfillment of its MEDSIS Vision Statement.  This Charter shall govern the composition, leadership, responsibilities, and duties of this Group.

The Scope/ Description of the Rate Design Working Group is as follows:

The Rate Design Working Group will discuss rate structures and alternative rate designs and regulatory models to enable and support the advancement of the MEDSIS vision while maintaining just and reasonable rates. The Group will:

  • Investigate alternative rate design and regulatory models for the purpose of achieving the MEDSIS vision
  • Evaluate alternative rate designs and regulatory models with respect to, among other things, fundamental principles of ratemaking (e.g., cost causation, rate gradualism, etc.) as well as their effect on DER adoption

2.0 COMPOSITION

The Working Group shall be comprised of interested parties, stakeholders, and participants of the MEDSIS Initiative.  The group is open to any member of the public who would like to participate and accepts registrants on a rolling basis. Participants are required to first register on the MEDSIS Working Group Portal at dcgridmod.com in order to get access to relevant materials and meeting notices.

The Group’s meetings and activities will be facilitated by SEPA Power (“Consultant”).

3.0 TERM AND SCHEDULE

The Working Group shall be convened from August 2018 – May 2019.    Working Group meetings will be conducted monthly. The actual schedule for each Working Group meeting is published on the MEDSIS Working Group Portal at dcgridmod.com.

4.0 RESPONSIBILITIES AND DUTIES

By participating in the MEDSIS Working Group process, Group members agree to attend Group meetings, either in person or remotely.  Group members agree to offer their perspectives and input during meetings and to respectfully consider and evaluate the input of other Group members.  The Group will collectively review interim and final work products, when requested by Consultant, in accordance with the agreed upon schedule for completing those reviews.

The Group may also identify key resources that are needed to execute its tasks, including but not limited to volunteer resources from its members and any additional paid technical resources requested along with ideas to cover the cost.

The Group shall produce the deliverables identified in Section 7.0.

The Group shall maintain a posting of its draft work products for Group member use only on the MEDSIS Working Group Workspace at https://members.sgip.org/higherlogic/ws/groups/MEDSIS_WG-3. All interim or draft documents developed by the group as well as all relevant stakeholder correspondence will be captured on this Workspace.

The Group shall maintain a posting of its finalized agendas, meeting minutes, interim and final deliverables on the MEDSIS Working Group Portal which will be accessible for all members of the public at dcgridmod.com.

5.0 KEY QUESTIONS TO ADDRESS

The Working Group will attempt to answer key questions that, if answered,  would allow the Group to make recommendations to the Commission regarding Rate Design in the District that are consistent with the MEDSIS vision.  

Therefore the Key Questions the Group will attempt to answer are as follows:

  • What alternative rate designs can be used to achieve the MEDSIS vision?
    • What are the pros and cons of each?
    • What incremental steps can be taken to progress towards the vision?
    • Should rate structures and designs differ among rate classes?
  • How can alternative rate designs and regulatory models align the utility’s business model with the MEDSIS vision while allowing the utility to maintain financial health and also promote cost savings?
    • How can cost savings for customers be aligned with utility earnings (win-win)?
    • What mechanisms would work best in the District?
    • How can rates drive utility behavior and MEDSIS objectives?
  • How can existing programs, incentives and tariffs be coordinated to maximize the locational benefits and minimize the costs of DERs? What role does rate structure & regulation have in maximizing benefits and minimizing costs?

6.0 DESIRED OUTCOMES

The Working Group will conclude activities in May 2019. Prior to the end of May 2019, the Group may submit interim products but, at a minimum, will submit a final report to the Commission outlining its recommendations on how options for alternative rate structures and designs can occur in the District in a manner that is consistent with the MEDSIS vision.  

The Group’s Desired Outcomes from the Working Group process are:

  • Alternative regulation and rate designs identified that advance the MEDSIS vision.
    • Safe, reliable and affordable electricity for all
    • Cleaner electricity
    • Integrating and connecting economically efficient DERs and devices
    • System utilization optimization
  • Rate Design contribution to the MEDSIS road map for DER integration and a sustainable energy delivery system

7.0 DELIVERABLES

The primary deliverable from the Group will be a final Working Group report to the Commission.  The report will make recommendations on how Rate Design can occur in the District consistent with the MEDSIS vision.  This report will be delivered to the Commission by the end of May 2019.

The Working Group Consultant shall develop and publish agendas prior to each Working Group meeting as well as meeting minutes after every meeting.  Additional artifacts, documents, presentations, reports, etc. as deemed relevant for the Group to complete its tasks may be produced by Consultant or Group members as mutually agreed upon by the Group members.  

  • Advanced Energy Group
  • Anbaric
  • Apartment and Office Building Association of Metropolitan Washington
  • Bicky Corman Law, PLLC
  • Bidgely
  • ConnectDER
  • DC Climate Action
  • DC Office of People’s Counsel
  • DC SUN
  • DC Sustainable Energy Utility
  • DC Water and Sewer Authority
  • District Solar
  • DC Department of Energy and Environment
  • Duane Morris LLP
  • Earthjustice
  • Edison Electric Institute
  • Enel-X
  • Energy Scalable
  • EQ Research
  • EV Advisors, LLC
  • Exelon Utilities
  • General Microgrids
  • Generate Capital
  • Greentel Group
  • GRID Alternatives
  • Grid Lion
  • Grid2.0
  • GridWise Alliance
  • ICF
  • Institute for Policy Integrity, NYU
  • Landis+Gyr
  • Metro DC DSA
  • Morgan, Lewis & Bockius LLP
  • National Association of Regulatory Utility Commissioners
  • NYU
  • Office of the Attorney General for the District of Columbia
  • Pepco Holdings Inc
  • PJM Interconnection, LLC
  • Plugged In Strategies
  • PXiSE
  • RAND Corporation
  • Revilo Hill Associates
  • SCE&G
  • SemaConnect
  • Sierra Club
  • Solar United Neighbors
  • SunRun
  • Tenley Consulting
  • The Climate Mobilization
  • The George Washington University
  • The Northbridge Group
  • Vermont Energy Investment Corporation
  • Washington Gas
  • WGL Energy

Please email DCMEDSIS@sepapower.org or inquire here with any comments or questions