Charge Without a Cause

The paper ‘Charge Without a Cause?’ was authored by Paul Chernick with Resource Insight in Massachusetts; John T. Colgan, a former Commissioner at the Illinois Commerce Commission; Rick Gilliam with Vote Solar in Colorado; Douglas Jester with 5 Lakes Energy in Michigan; and Mark LeBel with Acadia Center in Massachusetts. As the National Association of Regulatory Utility Commissioners (NARUC) prepares to hold its 2016 Summer Meetings, this paper assesses an approach to electricity rate design now being proposed by some utilities around the country in response to a changing energy landscape — imposing “demand charges” on residents and small businesses in addition to the large commercial and industrial customers where these types of charges have typically applied.