The Survey of TOU Rates in the United States
Motivation
Historically, the primary motivation for offering TOU rates has been
to introduce a more cost-reflective rate that provides customers
with an incentive to reduce consumption during higher-cost times
of day
Recently, intervenors in DG rates proceedings have proposed TOU
rates as a solution to the challenge of recovering grid costs from
customers with rooftop solar
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Volumetric TOU rates are commonly proposed by solar advocacy organizations as
an alternative to higher fixed charges or the introduction of a demand charge
Sometimes the rate proposals include a dynamic price signal which is combined
with the static TOU price signal (i.e., CPP/TOU combo)
Arizona, Nevada, Kansas, and Colorado are just a few examples of states where
TOU rates have been proposed by intervenors for this reason
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Prepared at the Request of Counsel
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