On-Site Generation and Pricing Policies for a Local Distribution Company: A Utility Line Is “Used and Useful” Even if It’s Not in Use

A distribution demand ratchet could provide an alternative to standby charges for distribution, so that wires costs are recovered based on the maximum demand recorded for a customer over the past year. This proposal would eliminate kWh charges for the collection of wires costs and rely on demand as a good proxy for the facilities required for the reliable delivery of energy to the customer.