Clark, Crowley, and Vigdor Present on Avoided Costs at EUCI Workshop

Categories: Innovative Electricity Pricing, Rate Design

March 19, 2024 - Michael Ty Clark, Nicholas Crowley, and Michael Vigdor

Utilities use estimates and measurements of avoided costs for a variety of objectives, including system planning and rate design. Such analytics are as relevant as ever in light of recent developments in the technology and design of our electric grid. The 2024 EUCI Avoided Costs for Electricity Services workshop considered the implications of emerging storage technology and the rise of distributed energy resource customers on the estimation and practical use of avoided costs. CA Energy Consulting speakers engaged utility managers and analysts on current methods for determining generation energy and capacity costs, as well as transmission and distribution costs, discussing applications to utility rate design. The workshop included example material from past work by CA Energy Consulting on these issues.