A regulatory framework for an evolving electricity sector: Highlights of the MIT utility of the future study

Economics of Energy and Environmental Policy

Volumn 6, Issue 1, 2017, Pages 71-92

  PéRez Arriaga, Ignacio J ^a,b   Jenkins, Jesse D ^c   Batlle, Carlos ^a,c  

^a Universidad Pontificia Comillas   (Spain)

^b MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

^c MASSACHUSETTS INSTITUTE OF TECHNOLOGY   (United States)

Author keywords

Distributed Energy Resources; Electricity Market Design; Electricity Rate Design; Network Regulation; Regulatory Economics

Indexed keywords

EID: 85018353036     PISSN: 21605882     EISSN: 21605890     Source Type: Journal    
DOI: 10.5547/2160-5890.6.1.iper     Document Type: Article

References (62)

1. Batlle, Carlos (2011). "A Method for Allocating Renewable Energy Source Subsidies among Final Energy Consumers." Energy Policy 39(5): 2586-95. http://dx.doi.org/10.1016/j.enpol.2011.02.027
2. Batlle, Carlos, Jose Pablo Chaves-Avila, Pablo Rodilla, Paolo Mastropietro, Tomas Gomez, and Ignacio J. Pérez-Arriaga (2016). Regulated and policy charges and electricity bills for a distributed future: Efficient price signals for increasingly elastic end-users. Cambridge, MA, USA: MIT Energy Initiative Utility of the FutureWorking Paper, MITEI-WP-2016-09.
3. Blonz Joshua A. (2016). Making the Best of the Second-Best: Welfare Consequences of Time-Varying Electricity Prices. Working Paper 275. Berkeley, CA, USA: Energy Institute at Haas.
4. Bollinger, Bryan and Wesley R. Hartmann (2015). Welfare Effects of Home Automation Technology with Dynamic Pricing. Working paper draft.
5. Bonbright, James (1961). Principles of Public Utility Rates. New York, NY, USA: Columbia University Press.
6. Borenstein, Severin (2015). The Private Net Benefits of Residential Solar PV: The Role Of Electricity Tariffs, Tax Incentives And Rebates. NBER Working Paper 21342. Cambridge, MA, USA: National Bureau of Economic Research.
7. Borenstein, Severin (2016). The Economics of Fixed Cost Recovery by Utilities. Working Paper 272. Berkeley, CA, USA: Energy Institute at Haas.
8. Burger, Scott and Max Luke (2016). Business Models for Distributed Energy Resources. Cambridge, MA, USA: MIT Energy Initiative Utility of the Future Working Paper, MITEI-WP-2016-02.
9. Cappers, Peter C., Anna Spurlock, Annika Todd, Patrick Baylis, Meredith Fowlie, and Catherin Wolfram (2016). Time-of-Use as Default Rate for Residential Customers: Issues and Insights. Report LBNL-1005704. Berkeley, CA, USA: Lawrence Berkeley National Laboratory, Smart Grid Investment Grant Consumer Behavior Study Analysis.
10. Castro, Felipe A. and Duncan S. Callaway (2017). Utility Pricing in the Prosumer Era: An Empirical Analysis of Residential Electricity Pricing in California. Allied Social Sciences Association Annual Meeting, Chicago, IL, USA, January 7, 2017.
11. Caramanis, Michael, Elli Ntakou, William. W. Hogan, Aranay Chakrabortty, and Jens. Schoene (2016). "Co-Optimization of Power and Reserves in Dynamic T & D Power Markets with Nondispatchable Renewable Generation and Distributed Energy Resources." Proceedings of the IEEE 104(4): 807-36. http://dx.doi.org/10.1109/JPROC.2016.2520758.
12. CEER (2015a). The Future Role of DSOs: A CEER Conclusions Paper. Brussels, Belgium: Council of European Energy Regulators.
13. CEER (2015b). CEER Advice on Customer Data Management for Better Retail Market Functioning. Report C14-RMF-68-03. Brussels, Belgium: Council of European Energy Regulators.
14. CEER (2016). CEER Benchmarking Report on Removing Barriers to Entry for Energy Suppliers in EU Retail Energy Markets. Report C15-RMF-70-03. Brussels, Belgium: Council of European Energy Regulators.
15. Crouch, Martin (2006). "Investment under RPI-X: Practical Experience with an Incentive Compatible Approach in the GB Electricity Distribution Sector." Utilities Policy 14(4): 240-244. http://dx.doi.org/10.1016/j.jup.2006.05.005.
16. Corneli, Steve and Steve Kihm (2015). Electric Industry Structure and Regulatory Responses in a High Distributed Energy Resources Future. Future Electric Regulation Report No. 1. Berkeley, CA: Lawrence Berkeley National Laboratory. https://doi.org/10.2172/1237497.
17. Cossent, Rafael (2013). Economic Regulation of Distribution System Operators and Its Adaptation to the Penetration of Distributed Energy Resources and Smart Grid Technologies. PhD thesis. Madrid, Spain: Universidad Pontificia Comillas.
18. Cossent, R. and T. Gómez (2013). "Implementing Incentive Compatible Menus of Contracts to Regulate Electricity Distribution Investments." Utilities Policy 27: 28-38. http://dx.doi.org/10.1016/j.jup.2013.09.002.
19. CPUC (2014). Order Instituting Rulemaking Regarding Policies, Procedures and Rules for Development of Distribution Resources Plans Pursuant to Public Utilities Code Section 769. Sacramento, CA: State of California Public Utilities Commission.
20. De Martini, Paul and Lorenzo Kristov (2015). Distribution Systems in a High Distributed Energy Resources Future. Future Electric Utility Regulation Report No. 2. Berkeley, CA, USA: Lawrence Berkeley National Laboratory. https://doi.org/10.2172/1242415.
21. DOE (2016). Revolution.Now: The Future Arrives for Five Clean Energy Technologies. Washington, DC: U.S. Department of Energy. 2017 by the IAEE. All rights reserved.
22. European Commission (2003). Directive 2003/54/EC Concerning Common Rules for the Internal Market in Electricity and Repealing Directive 96/92/EC. Brussels, Belgium: European Commission.
23. European Commission (2009). Directive 2009/72/EC Concerning Common Rules for the Internal Market in Electricity and Repealing Directive 2003/54/EC. Brussels, Belgium: European Commission.
24. European Commission (2010). Interpretative Note on Directive 2009/72/EC Concerning Common Rules for the Internal Market in Electricity and Directive 2009/73/EC Concerning Common Rules for the Internal Market in Natural Gas: The Unbundling Regime. Commission Staff Working Paper. Brussels, Belgium: European Commission.
25. FERC (1996). Order No. 888, Final Rule. Promoting Wholesale Competition Through Open Access Nondiscriminatory Transmission Services by Public Utilities (Docket No. RM95-8-000). Washington DC, USA: US Federal Energy Regulatory Commission.
26. FERC (1999). Order No. 2000, Final Rule. Regulation Transmission Organizations (Docket No. RM99-20-000). Washington DC, USA: US Federal Energy Regulatory Commission.
27. FERC (2012). Assessment of Demand Response and Advanced Metering: Staff Report. Washington DC, USA: U.S. Federal Energy Regulatory Commission.
28. FERC (2014). Operator-Initiated Commitments in RTO and ISO Markets. Staff Analysis in Docket No. AD14-14-000. Washington DC: US Federal Energy Regulatory Commission.
29. Faruqui, Ahmad and Sanem Sergici (2010). "Household response to dynamic pricing of electricity: A survey of 15 experiments." Journal of Regulatory Economics 38: 193-225. http://dx.doi.org/10.1007/s11149-010-9127-y
30. Friedrichsen, Nele (2015). "Governing Smart Grids: The Case for an Independent System Operator." European Journal of Law and Economics 39(3): 553-572. First online July 2012. http://dx.doi.org/10.1007/s10657-012-9345-0
31. Green, Richard and Iain Staffell. "'Prosumage' and the British electricity market." Economics of Energy and Environmental Policy 6(1): 33-50. https://doi.org/10.5547/2160-5890.6.1.rgre.
32. Herrero, Ignacio, Pablo Rodilla, and Carlos Batlle (2015). "Electricity Market-Clearing Prices and Investment Incentives: The Role of Pricing Rules." Energy Economics 47: 42-51. http://dx.doi.org/10.1016/j.eneco.2014.10.024
33. Herrero, Ignacio, Pablo Rodilla, and Carlos Batlle (2016). Enhancing Intraday Price Signals in U.S. ISO Markets for a Better Integration of Variable Energy Resources. Cambridge, MA, USA: MIT Energy Initiative Utility of the Future Working Paper MITEI-WP-2016-05.
34. Huntington, Sam C., Pablo Rodilla, and Carlos Batlle (2016). Revisiting Support Policies for RES-E Adulthood: Towards Market Compatible Schemes. Cambridge, MA, USA: MIT Utility of the FutureWorking Paper MITEIWP-2016-07.
35. Jenkins, Jesse D. and Valerie J. Karplus (2016). Carbon pricing under binding political constraints. Helsinki, Finland: UNU-WIDER Working Paper 2016/44.
36. Jenkins, Jesse D., and Ignacio J. Pérez-Arriaga (2017). "Improved Regulatory Approaches for the Remuneration of Electricity Distribution Utilities with High Penetrations of Distributed Energy Resources." The Energy Journal 38(3): 89-117.
37. Joskow, Paul L. (2014). Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks. In Nancy L. Rose, ed., Economic Regulation and Its Reform: What Have We Learned. Chicago, IL, USA: University of Chicago Press.
38. Laffont, Jean-Jacques, and Jean Tirole. (1993). A Theory of Incentives in Procurement and Regulation. Cambridge, MA, USA: MIT Press.
39. Lazard (2016a). Lazard's Levelized Cost of Energy Analysis, Version 10.0. Available at: Https://www.lazard.com/media/438038/levelized-cost-of-energy-v100.pdf
40. Lazard (2016b). Lazard's Levelized Cost of Storage Analysis, Version 2.0. Available at: Https://www.lazard.com/media/438042/lazard-levelized-cost-of-storage-v20.pdf
41. Lowry, Mark N. and TimWoolf (2016). Performance-based Regulation in a High Distributed Energy Resource Future. Berkeley, CA, USA: Lawrence Berkeley National Laboratory, Future Electric Regulation Series Report No 3. LBNL-1004130.
42. Luke, Max (2016). Promoting Innovation in Electricity Distribution Networks: New Tools for Regulators and Planners. Masters Thesis. Cambridge, MA, USA: Massachusetts Institute of Technology.
43. MacGill, Iain and Robert Smith (2017). "Consumers or prosumers, customers or competitors? Australian perspectives on possible energy users of the future." Economics of Energy and Environmental Policy 6(1): 51-70. https://doi.org/10.5547/2160-5890.6.1.imac.
44. Malkin, David and Paul A. Centolella (2013). Results-Based Regulation: A Modern Approach to Modernize the Grid. Atlanta, GA, USA: GE Digital Energy.
45. Millán, Jaime (2006). Entre el Estado y el Mercado. Tres décadas de reformas en el sector eléctrico de América Latina (in Spanish). Banco Interamericano de Desarrollo, 2006. ISBN: 1597820288.
46. Neuhoff, Karsten, Nolan Ritter, Aymen Salah-Abou-El-Enien, and Philippe Vassilopoulos (2016). Intraday Markets for Power: Discretizing the Continuous Trading? DIW Discussion Paper 1544, Berlin, Germany
47. NYDPS (2014). Case 14-M-0101 Proceeding on Motion of the Commission in Regard to Reforming the Energy Vision: DPS Staff Report and Proposal. Albany, NY, USA: State of New York Public Service Commission, Department of Public Service.
48. NYDPS (2015a). Order Adopting Regulatory Policy Framework and Implementation Plan. Case 14-M-0101: Reforming the Energy Vision. Albany, NY, USA: State of New York Public Service Commission, Department of Public Service.
49. NYDPS (2015b). Staff White Paper on Ratemaking and Utility Business Models. Albany, NY, USA: State of New York Public Service Commission, Department of Public Service.
50. NYDPS (2016). Order Adopting a Ratemaking and Utility Revenue Model Framework. Case 14-M-0101: Reforming the Energy Vision. Albany, NY, USA: State of New York Public Service Commission, Department of Public Service.
51. Ofgem (2009). Electricity Distribution Price Control Review Methodology and Initial Results Paper. London, UK: Office of Gas and Electricity Markets.
52. Ofgem (2013a). Strategy decision for the RIIO-ED1 electricity distribution price control: Outputs, incentives and innovation. London, UK: Office of Gas and Electricity Markets.
53. Ofgem (2013b). Strategy decision for the RIIO-ED1 electricity distribution price control: Financial issues. London, UK: Office of Gas and Electricity Markets.
54. O'Neill, Richard, Anya Castillo, Brent Eldridge, Robin B. Hytowitz (2016). "Dual Pricing Algorithm in ISO Markets." IEEE Transactions on Power Systems PP(99): 1-1. http://dx.doi.org/10.1109/TPWRS.2016.2614891.
55. Pérez-Arriaga, Ignacio J., Christopher Knittel, Raanan Miller, et al. (2016). Utility of the Future: An MIT Energy Initiative response to an industry in transition. Cambridge, MA, USA: MIT Energy Initiative, Massachusetts Institute of Technology. Available at: Http://energy.mit.edu/uof
56. Pérez-Arriaga, Ignacio J., Sophia Ruester, Sebastian Schwenen, Carlos Batlle, and Jean-Michel Glachant (2013). From Distribution Networks to Smart Distribution Systems: Rethinking the Regulation of European Electricity DSOs. Florence, Italy: European University Institute, THINK Project, Topic 12. http://dx.doi.org/10.2870/78510
57. Rubio-Oderiz, Francisco J. (1999). Methodology of Transmission Network Cost Allocation under a Competitive Regulatory Framework. Doctoral dissertation (in Spanish). Madrid, Spain: Institute for Research in Technology, Universidad Pontificia Comillas de Madrid.
58. Rubio-Oderiz, Francisco J. and Ignacio J. Pérez-Arriaga (2000). "Marginal Pricing of Transmission Services: A Comparative Analysis of Network Cost Allocation Methods." IEEE Transactions on Power Systems 15 (1): 448- 54. http://dx.doi.org/10.1109/59.852158
59. Schill, Wolf-Peter, Alexander Zerrahn, and Friedrich Kunz (2017). "Prosumage of solar electricity: Pros, cons, and the system perspective." Economics of Energy and Environmental Policy 6(1): 7-32. https://doi.org/10.5547/2160-5890.6.1.wsch.
60. Schweppe, Fred C. (1978). "Power Systems '2000': Hierarchical Control Strategies." IEEE Spectrum 15(7): 42- 47. http://dx.doi.org/10.1109/MSPEC.1978.6367813.
61. Schweppe, Fred C., Michael C. Caramanis, Richard D. Tabors, and Roger E. Bohn (1988). Spot Pricing of Electricity. Dordrecht, Netherlands, and Norwell, MA, USA: Kluwer Academic Publishers. https://doi.org/10.1007/978-1-4613-1683-1.
62. Wellinghoff, Jon, James Tong, and Jenny Hu. (2015). The 51st State of Welhuton: Market Structures for a Smarter, More Efficient Grid. 51st State Initiative. Solar Electric Industry Association. Washington DC, USA.