Rethinking Regulated Ratemaking: Menu-of-Service Electric Utility Tariffs

Retail electricity consumers are demanding more choice in the reliability, power quality, and efficiency of their energy services. Electric distribution companies provide delivery services for the electricity commodity provided by central power generators. More customer choice in the use of the transmission and distribution system would benefit customers and would increase the application of distributed energy resources, including on-site generation, storage, and metering, monitoring and control devices. Greater choice offered through a retail menu-of-service approach would provide feedback to electric distribution companies. This feedback could affect the planning and design of the electricity network. Reform of the network is needed to remain responsive to changing customer needs and technologies. Greater choice would also set the stage for increased use of competitive markets for retail electric services