SPEER Submits Comments to PUC in Response to Alternative Ratemaking Mechanisms

Austin, Texas, August 30 – The South-central Partnership for Energy Efficiency as a Resource (SPEER), a non-profit organization advancing energy efficiency in Texas and Oklahoma, submitted written comments on August 25, 2016, to the Public Utility Commission of Texas in response to the recently filed Report on Alternative Ratemaking Mechanisms.

“Earlier this year, SPEER produced a report on rates and energy efficiency and responding to the Christensen report on alternative ratemaking mechanisms is a direct tie-in to our policy work in this area,” said SPEER Policy Manager Robert Bevill.

SPEER’s key comments include:

• Set goals for utility performance, aimed at encouraging utilities to achieve the capital and operating efficiencies, along with the improved customer services, that a competitive market would achieve.
• Provide utilities the opportunity to earn an authorized level of revenue, if managed competently, de-linking revenues from load variations to allow utilities to be neutral toward efficiency improvements by their customers or internally.
• Provide incentives for achieving clear performance objectives, so utilities have the opportunity to earn a greater return on investment, while total operating and capital expenditures decline, driving a reduction in customer rates.
• Fixed charges deter customers from making energy efficiency or other distributed resource-type investments by extending the pay-back period. In contrast, volumetric or demand charges incent customers to invest in efficiency and peak-reduction technologies, such as energy storage, roof-top solar or other distributed resources that can lead to a higher utilization rate of utility assets.

“Overall, SPEER supports the review of ratemaking processes and methods that move toward a more efficient utility,” Bevill said.

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About SPEER

SPEER is a non-profit regional energy efficiency organization, working to accelerate adoption of advanced building systems and energy efficient products, services, and technologies in Texas and Oklahoma. For more information, please visit www.eepartnership.org