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NARUC Releases DER Draft Rate Design Manual

July 22, 2016 By Cheryl Kaften

The National Association of Regulatory Utility Commissioners (NARUC) has announced that the group will convene a town hall meeting for the public and other interested parties to provide input on the draft, Manual on Distributed Energy Resources (DER) Compensation, during its Summer Committee Meetings in Nashville, Tennessee,  starting this weekend on July 23.

On July 21, the draft manual was distributed to stakeholder groups and posted to NARUC’s website. To review the draft manual, click here.

The draft DER compensation manual is the result of a resolution adopted on November 11, 2015, at NARUC’s Annual Meeting, to create a Staff Subcommittee on Rate Design that would provide a forum for state commissions to address rate design challenges.

“Once complete, the manual will be a practical tool to help state regulators manage the complicated issues associated with rate design for distributed generation,” said NARUC President Travis Kavulla. “While the staff subcommittee has produced a solid draft, the present release is not the final word on this matter, and we expect a number of changes to be made in response to the feedback we receive at Nashville and by the comment deadline on September 2. Stakeholders have actively participated so far, and I hope that will continue.”

Organized in five main sections, the manual:

  • Describes the basic rate design process and how DER affects that process,
  • Defines DER and its relevance for states,
  • Identifies the challenges and questions raised by the details of rate design and compensation, and
  • Outlines a variety of DER compensation methodologies and provides a description of advanced technologies that may assist regulators and utilities in planning and monitoring DER development.

The subcommittee solicited input on preparing the draft manual earlier this year and received roughly 130 responses. The feedback on the current draft will help inform the final manual, which is scheduled for a November release.  All comments on the draft manual should be sent to responses@naruc.org.

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