Utility Rate Design Principles

Residents and businesses want control over high electricity costs; high fixed charges or minimum monthly bills for electric service will decrease that control. While fixed charges and minimum bills increase the certainty of the timing of revenue collections for utilities, they reduce consumer control over energy bills, undermine our rate design principles and the broader clean energy future, and often conflict with efficiency and clean energy policies. This document has short and long-term recommendations for a more consumer-friendly electric rate design, as well as a section answering frequently asked questions.