"Performance-based regulation (PBR) of utilities has emerged as an important ratemaking option in the last 25 years. It has been implemented in numerous jurisdictions across the United States and is common in many other advanced industrialized countries. PBR’s appeal lies chiefly in its ability to strengthen utility performance incentives relative to traditional cost-of-service regulation (COSR). Some forms of PBR can streamline regulation and provide utilities with greater operating flexibility. Ideally, the benefits of better performance are shared by the utility and its customers. The shortcomings of traditional COSR in providing electric utilities with incentives that are aligned with certain regulatory goals are becoming increasingly clear. In particular, COSR can provide strong incentives to increase electricity sales and utility rate base. Further, some parties express concern that traditional COSR does not provide utilities with appropriate financial incentives to address evolving industry challenges such as changing customer demands for electricity services, increased levels of distributed energy resources (DERs), and growing pressure to mitigate carbon dioxide emissions. In addition, attention to potential new regulatory models to support the 'utility of the future' has renewed interest in PBR. This report describes key elements of PBR and explains some of the advantages and disadvantages of various PBR options. We present pertinent issues from the perspectives of utilities and customers. In practice, these different perspectives are not diametrically opposed. Nonetheless, this framework is useful for illustrating how various aspects of PBR may be viewed by those key groups. Regulators have a unique perspective, in that they must balance consumer, utility, and other interests with the goal of achieving a result that is in the overall public interest"--Executive summary.

Few industries in the U.S. are as stuck in the past as our utilities are. In the face of growing challenges from climate change and the need for energy security, a system and a business model that each took more than a century to evolve must now be extensively retooled in the span of a few decades. Despite the need, many of the technologies and institutions needed are still being designed or tested. It is like rebuilding our entire airplane fleet, along with our runways and air traffic control system, while the planes are all up in the air filled with passengers. In this accessible and insightful book, Peter Fox-Penner considers how utilities interact with customers and how the Smart Grid could revolutionize their relationship. Turning to the supply side, he considers the costs of, and tradeoffs between, large-scale power sources such as coal plants and small-scale power sources close to customers. Finally, he looks at how utilities can respond to all of these challenges and remain viable, while financing hundreds of billions of dollars of investment without much of an increase in sales. Upon publication, Smart Power was praised as an instant classic on the future of energy utilities. This Anniversary Edition includes up-to-date assessments of the industry by such leading energy experts as Daniel Estes and Jim Rogers, as well as a new afterword from the author. Anyone who is interested in our energy future will appreciate the clear explanations and the in-depth analysis it offers.

The Special Issue Distributed Energy Resources Management 2018 includes 13 papers, and is a continuation of the Special Issue Distributed Energy Resources Management. The success of the previous edition shows the unquestionable relevance of distributed energy resources in the operation of power and energy systems at both the distribution level and at the wider power system level. Improving the management of distributed energy resources makes it possible to accommodate the higher penetration of intermittent distributed generation and electric vehicle charging. Demand response programs, namely the ones with a distributed nature, allow the consumers to contribute to the increased system efficiency while receiving benefits. This book addresses the management of distributed energy resources, with a focus on methods and techniques to achieve an optimized operation, in order to aggregate the resources namely in the scope of virtual power players and other types of aggregators, and to remunerate them. The integration of distributed resources in electricity markets is also addressed as an enabler for their increased and efficient use.

A comprehensive, coherent strategy for modernizing America's electricity infrastructure while ensuring affordable, reliable, secure, and environmentally sustainable electricity services. America's aging electricity infrastructure is deteriorating rapidly even as the need for highly reliable electric service—driven by the explosion of digital technology—continues to rise. Largely missing from national discussions, however, is a coherent, comprehensive national strategy for modernizing this critical infrastructure. Energy expert Mason Willrich presents just such a strategy in this book, connecting the dots across electric utilities, independent suppliers, government bureaucracies, political jurisdictions, and academic disciplines. He explains the need for a coherent approach, offers a framework for analyzing policy options, and proposes a step-by-step strategy for modernizing electrical infrastructure, end-to-end, in a way that ensures the delivery of affordable, reliable, secure, and environmentally sustainable electricity services. Willrich argues that an effective electrical infrastructure modernization strategy must incorporate flexibility, adaptability, and the capacity to coordinate policies at local, state, and federal levels. He reviews the history of America's electrification, from Edison's demonstration of the incandescent light bulb through the recent expansion of wind, solar, and energy efficiency as carbon-free energy resources. He describes the current ownership and operation of the electric industry and the complicated web of federal and state policies that govern it.

Americans' safety, productivity, comfort, and convenience depend on the reliable supply of electric power. The electric power system is a complex "cyber-physical" system composed of a network of millions of components spread out across the continent. These components are owned, operated, and regulated by thousands of different entities. Power system operators work hard to assure safe and reliable service, but large outages occasionally happen. Given the nature of the system, there is simply no way that outages can be completely avoided, no matter how much time and money is devoted to such an effort. The system's reliability and resilience can be improved but never made perfect. Thus, system owners, operators, and regulators must prioritize their investments based on potential benefits. Enhancing the Resilience of the Nation's Electricity System focuses on identifying, developing, and implementing strategies to increase the power system's resilience in the face of events that can cause large-area, long-duration outages: blackouts that extend over multiple service areas and last several days or longer. Resilience is not just about lessening the likelihood that these outages will occur. It is also about limiting the scope and impact of outages when they do occur, restoring power rapidly afterwards, and learning from these experiences to better deal with events in the future.