Utility Rate Making: An Intersection of Economics and Social Good [Guest Editorial]

Utility rate making is becoming increasingly critical. The high penetration of distributed energy resources changes not only the landscape of utility operating and planning practices but also the business models that govern how utilities recover their service costs. The objective of power generation and delivery has changed from considering only the delivery of reliable and cost-effective energy services to also accounting for sustainability and minimizing adverse environmental impacts. Today’s energy systems are evolving from traditional highly centralized suppliers to multiple distributed small suppliers or even self-suppliers. This evolution could be further accelerated when major technology breakthroughs in energy storage and photovoltaics (PVs) make these systems less expensive, more reliable, and more efficient. All of these electric system changes greatly affect many traditional rate-making principles, methodologies, and processes.