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All sourcesNASA NTRSDOE OSTI
DOE OSTI2023

A Snapshot of EV-Specific Rate Designs Among U.S. Investor-Owned Electric Utilities

EV-specific electric utility rates have a profound effect on the underlying economics motivating EV adoption. State utility regulators and electric utilities play a critical role in approving and designing rates, respectively. However, the nascence of the EV industry has resulted in regulators’ and utilities’ having very limited experience with EV-specific rate designs. This suggests there could be substantial benefit from efforts intended to provide a better understanding of how EV-specific rates are designed presently in the United States. To meet that need, Berkeley Lab researchers, with support from E9 Insight, developed a database of piloted, proposed, and offered rates among U.S. investor-owned utilities (IOUs) between 2012 and 2022. The database is comprised of 217 electric utility retail rates from IOUs in 38 states and the District of Columbia that either required proof of EV ownership or were otherwise designed for the purposes of reselling energy for use in EV charging (i.e., EV-specific rates). The analysis of the database identifies the EV-specific rate designs currently observed, infers a number of policy-driven objectives, and suggests a number of next steps for future research.

33 ADVANCED PROPULSION SYSTEMS↗
DOE OSTI2022

Retail Rate Projections for Long-Term Electricity System Models

Electricity prices reported in most electricity-system planning studies leave out many price components and do not translate into retail rates, making it difficult to interpret how projected electricity system changes will impact costs to consumers. Full transmission costs are left out of many studies; distribution and administration costs are similarly excluded or highly simplified. Here, we present a detailed bottom-up accounting method for projecting future retail electricity rates in the United States. Making the simplifying assumption that each state is served by an investor-owned utility (IOU), we translate projected generation and transmission capacity and costs from the Regional Energy Deployment System (ReEDS) capacity-expansion model into IOU balance sheet expenditures, accounting for depreciation, taxes, and the breakdown between operating and capitalized (rate-based) expenses. Distribution, administration, and intra-regional transmission costs are projected forward based on empirical trends over the past decade. Modeled bottom-up electricity rates are compared to historical rates from 2010-2019, and the sensitivity of modeled rates to a range of financing and modeling assumptions is explored. Distribution and administration rate components account for roughly 40% (4.4 ¢/kWh) of the projected national-average retail rate over 2020-2050 under central assumptions.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2025

Voices from Rural Electric Cooperatives: A Call for a DER Integration Playbook for Rural and Agricultural Income & Savings from Renewable Energy (RAISE)

Rural-serving electric utilities (RSEUs)—including electric cooperatives, municipal systems, and small investor-owned utilities—are essential players in the evolving energy landscape. These community-focused entities are increasingly being asked to consider distributed energy resources (DERs) such as rooftop and ground-mounted solar, wind, battery storage, smart water heaters, and demand response programs (NRECA 2025; Lenhart et al. 2020). Yet the path to DER adoption is far from straightforward in the rural context. This report is based on in-depth interviews with managers of rural electric cooperatives across the United States. These conversations offer a grounded, unvarnished look at how DERs are perceived, what barriers exist, and what conditions might enable integration and adoption. While the utilities interviewed vary in geography, size, and DER experience, several clear and common themes emerged across electric cooperatives such that the report recommends the development of a DER Integration Runbook to help utilities assess readiness, define local use cases, engage stakeholders, pilot projects, and iterate, expanding over time.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2024

Integration of equitable resilience metrics into climate-informed electric utility planning processes: phase one

Working together, Sandia National Laboratories, Southern California Edison (SCE) - an Investor-Owned Utility (IOU) - and the California Public Utilities Commission (CPUC) are studying how electric utilities can use equity and resilience metrics to help inform the prioritization and sequencing of resilience-driven infrastructure investments. To this end, this project evaluated “Social Burden,” an equitable resilience metric which measures the potential impact of disruptions in access to non-electric critical services on people and estimates community resilience to these disruptions. The Social Burden was expanded to incorporate SCE’s existing equity metric and applied to evaluate the potential impacts from a range of climate-informed hypothetical outage scenarios developed under SCE’s 2022 Climate Adaptation Vulnerability Assessment. One baseline (“blue-sky”) state and eight different outage scenarios were evaluated to measure the potential impacts of the outages on non-electric infrastructure, critical services, and people. Key findings include: 1) the Social Burden framework is flexible enough to adapt to and build upon existing utility equity and/or resilience metrics, 2) Social Burden results highlight the high degree of non-electric service redundancy within the SCE service area with most (6/8) hypothetical outage scenarios predicted to increase people’s Social Burden by less than 10%; however, 3) access to critical services and people’s ability to obtain them is unequal and spatially clustered, meaning that there are some hypothetical outage scenarios (2/8) that will exert a higher toll on communities directly experiencing the outage as well as some nearby communities with pre-existing vulnerabilities. The report concludes with recommendations for potential use cases of the expanded Social Burden metric and identifies priority follow-on work. Potential use cases may include incorporating equity into IOU’s prioritization of climate resilience investments. Additionally, Social Burden analysis may provide additional data and insights to augment grid planning, potentially by identifying additional needs and/or prioritizing previously identified needs.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

One Year In: Tracking the Impacts of NEM 3.0 on California’s Residential Solar Market

On December 15, 2022, the California Public Utilities Commission passed an overhaul of the net metering program for the state’s investor-owned utilities. The changes replaced the long-standing net energy metering (NEM) tariffs with a net billing tariff (NBT) structure—colloquially known as “NEM 3.0”—which significantly reduces the compensation for behind-the-meter solar photovoltaic (PV) systems. The NEM tariffs remained open for new interconnection applications until April 15, 2023, but after that date, all new interconnection applications were submitted under NBT. Now, one year later, we have an opportunity to evaluate how the California solar market has evolved under this new compensation regime. As a precursor to its annual Tracking the Sun report, Berkeley Lab has released a short technical brief describing key trends in the California residential solar market since the roll-out of the new NBT structure. The purpose of this analysis is to provide empirical insights into how the market has evolved over the past year, confirming some expectations while also revealing several striking surprises.

14 SOLAR ENERGY↗
DOE OSTI2021

Disaggregating Future Retail Electricity Rate Growth [Slides]

Recent Berkeley Lab research found that modest retail rate increases over the past 10 years were mostly driven by large increases in capital expenditures (CapEx) that were offset in part by substantial wholesale price reductions. Decision-makers are increasingly concerned about the potential future rate impacts of a number of policies and industry trends that support rapid decarbonization, electrification, and grid modernization. Using historical FERC Form 1 data and the existing literature on policies and industry trends that are likely to affect utility-incurred costs and retail sales, Berkeley Lab researchers developed ranges of forecasted growth rates for cost-related rate drivers (i.e., fuel and purchased power; transmission, distribution, generation, and other categories of both non-fuel operations & maintenance and CapEx) and non-cost related rate drivers (i.e., retail sales, peak demand, and customers). These were then used as inputs to a pro-forma utility financial model (FINDER) that estimated the growth in retail electric rates between 2020 and 2030 for a prototypical vertically-integrated investor-owned utility in the United States. The analysis produced the following results: 1. Assuming average growth rates in all rate drivers, future retail rate growth is driven by sizable increases in all CapEx costs, where fuel and purchased power costs are replaced by generation CapEx as the largest rate component between 2020 and 2030. 2. Growth in sales/peak demand/customers, generation CapEx costs, and fuel and purchased power (FPP) costs, in isolation, produce the most uncertainty in rate growth. Specifically, a 1% increase in the compound annual growth rate (CAGR) of retail sales, coincident peak demand (CP), and customers (Sales-CP-Cust) results in a 0.88-0.93% decrease in the CAGR of rates, in isolation. However, a 1% increase in the CAGR of generation CapEx budgets results in a 0.07-0.14% increase in the CAGR of rates, while a 1% increase in the CAGR of FPP costs causes a 0.10-0.14% increase in the CAGR of rates, all else being equal. 3. Taking into account the correlation and variability of the growth in all rate drivers jointly, generation CapEx is expected to be both the largest and most uncertain rate component by 2030 (20-25% share of the retail rate). Transmission and distribution CapEx, along with fuel and purchased power costs are each expected to comprise between 12% and 17% of retail rates.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2026

Electric Utility Distribution Costs: Scoping Study on Trends, Drivers, and Possible Response Strategies [Slides]

This scoping study synthesizes information that will help stakeholders understand the scope, scale, and drivers of recent increases in investor-owned utility (IOU) expenditures on local distribution power grids, while providing regulators and other decision-makers with potential strategies to keep electricity bills down. The study includes five distinct components. Drawing first on data from FERC Form 1, it summarizes key trends in past and recent IOU distribution costs. Next, through a review of a sample of distribution-system plans, it characterizes material drivers of planned distribution expenditures. Ultimately, regulators must approve cost recovery for IOU expenditures, including those for the distribution system. The study therefore also: examines trends in utility requests and regulatory approvals related to changes in retail rates and return on equity; identifies areas where utility shareholder and customer incentives may be misaligned; and develops a menu of options that state regulators might consider to optimize distribution system expenditures. Some of the key findings include: - IOU distribution spending at a national level has grown by 6%/yr since 2014 in real dollar terms, 4x faster than in the prior 20 years and consisting mostly of capital (not operating) expenditure. - On a per-kWh basis, increases in IOU distribution costs since 2014 represent over 30% of the overall national-average increase in retail electricity rates. - Regional spending growth has ranged from 2-8%/yr, with larger estimated rate impacts in CAISO, then NYISO & ISO-NE, and then the Southeast, MISO & PJM (see figure). - Some utilities are planning for significantly increased distribution system spending. Planned spending on managing the existing system (asset replacement, safety & reliability, and resilience are all important drivers) exceeds that for capacity expansion. - IOU rate increase requests ($18 billion in 2025) and public utility commission (PUC) approval levels (average of 64% of requested amounts from 2021-2025) have recently hit multi-decadal highs. - PUCs in New England and the Southeast have recently approved a greater fraction of rate requests (>75%, on average) than in ther regions, while PUCs in California and the Southeast have generally authorized higher equity returns than in other regions. - Regulators have many tools to tackle potential misalignments between utility and customer interests and, more specifically, to optimize and reduce distribution costs. Shorter-term options include those related to return on equity, capital structure, depreciation, trackers, construction work in progress, and securitization. Longer-term options include performance-based regulation and a wide variety of planning-related requirements. All options embed important tradeoffs.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2024

Mitigating Stranded Asset Risks to Utility Customers: an Exploration of Securitization and Retiring Coal Generation

Coal generation currently accounts for approximately 19.5 percent of electricity generated in the United States, down from 51.7 percent of the generation mix in 2000. In 2023, the EIA expects 8.9 gigawatts (GW) of planned retirements of coal-fired capacity. Many of the coal-fired power plant retirements that have already occurred or are planned for the next decade will be plants that have not yet reached the end of their useful life, and are therefore not fully depreciated. Ensuring that utility customers do not face an undue burden in paying for these stranded assets will become an increasingly important issue over the next few years for PUCs overseeing the safety, reliability, and affordability of investor-owned utility service. This report reviews the role that securitization can play in reducing the costs associated with stranded assets due to early coal plant retirements.

01 COAL, LIGNITE, AND PEAT↗
DOE OSTI2022

California Energy Systems for the 21st Century (CES-21) Program, CRADA TC02200 (Final Report)

The following report representsthe culmination of a five-year Cybersecurity Research and Development (R&D) program performed by California’s Investor-Owned Utilities (IOUs) and Lawrence Livermore National Laboratory (LLNL) and funded by the IOUs’ electricity ratepayers as authorized by California Legislation and the California Public Utilities Commission (CPUC). The cybersecurity R&D, which was intensely technical in nature, was broken into three major workstreams: 1. The development of a modeling & simulation platform, to explore the potential effects of various threat and response scenarios at grid scale; 2. The establishment of a physical testbed with separate substation instances from each of the IOUs, to evaluate threats and responses on actual substation equipment; 3. The development of a research package consisting of several capabilities to support the industry’s evolution towards automated threat response and other next-generation cybersecurity techniques Throughout the program, there was extensive collaboration between the program team and national laboratories, federal departments, academic institutions and industry organizations. Several of the tools developed through the program have been made available to the open source community, to enable faster adoption and continued development of important cybersecurity capabilities. While this program began to develop much of the foundation for automated threat response, much work remains to be done, and this report recommends a series of next steps. While the Executive Summary below has been simplified as much as possible, the very technical nature of the subject matter would make further reduction difficult without causing meaning to be lost. Due to the sensitive nature of the research, some topics are intentionally covered at a high level to protect the research and therefore the electric grid and customers of California and the Nation. For further detail, clarification or questions we suggest discussion with the program team.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗
DOE OSTI2023

Equitable Energy Transition Planning in Holyoke, Massachusetts: A Technical Analysis for Strategic Gas Decommissioning and Grid Resiliency

Buildings account for 30% of the emissions in Massachusetts and are the largest source of emissions in the United States, along with transportation. Pipeline-delivered methane gas is the dominant heating source in Massachusetts, representing 51% of heating in the state. The current gas network in Massachusetts and across many other US states is aging, a relic of the coal gas era, with thousands of miles of cast iron and unprotected steel pipes that are considered leak prone. Even newer plastic pipes are subject to degradation and in need of replacement, an upgrade that averages $2.8 million per mile of pipeline replacement across investor-owned utilities in Massachusetts.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2025

Do Mandates Deliver Cost Reductions for Energy Storage?

In 2013, California implemented a mandate directing the state’s investor-owned utilities to procure 1325 MW of energy storage, to help integrate nondispatchable renewable sources of energy and assist the state in meeting its environmental goals. This paper evaluates this policy’s impact of both battery deployment, and cost, finding that as of 2019, the state was effective in spurring nearly 500 MWh of battery storage deployment over what would have been installed in absence of the policy. This additive deployment would have the effect of reducing global battery cell costs by roughly $1.00/ kWh, based on learning by doing. To support these findings, we utilize both a difference in differences estimation, and a synthetic control analysis, both of which allow us to compare battery deployment in California, to deployment in other states. To pair deployment to cost reduction, we use a learning curve analysis, which links battery shipments to cell and storage block costs. For policymakers, these results provide evidence to the effectiveness of mandates in promoting storage deployment and help explain how these policies can induce downstream effects.

Boff, Daniel S.↗
DOE OSTI2025

Work In Progress: Using Internships as Means for Indirect Assessment of ABET Criteria 3 "1-7" Student Outcomes

PSU operates the Power Engineering Internship program with funding from two U.S. Department of Energy grants. The program is operated in partnership with the lead organizations of these grants, an investor-owned utility, Portland General Electric (PGE), and the Confederated Tribes of the Warm Springs (CTWS). One of the programmatic goals of the PEI is to create and sustain a clean energy engineering workforce pipeline on behalf of these lead organizations. Both grants support internships at PGE, which is also a partner on the CTWS grant. The PEI provides engineering students with year-long internships, spanning both the academic year and the summer. The interns work at PGE facilities located throughout the Portland metropolitan area. Interns are employed full-time during summers and part-time during the academic year. Proximity of the worksites to the PSU campus enables the interns to participate in the program while attending school full-time. During the academic year, students average fifteen hours per week, adjusting their work schedule according to their academic workload. The interns are allocated 930 hours per year, 480 in the summer and 450 during the academic year, which they can plan as they see fit. The internships provide meaningful financial support for the students, who can earn up to $21k if they use all of their allocated hours. Such funding is particularly important for the typical student who attends a minority serving institutions,

99 GENERAL AND MISCELLANEOUS↗
DOE OSTI2021

Utility Regulation Through Legislation: A Cautionary Tale for Legislators, Regulators, Stakeholders, and Utilities

State legislatures in the U.S. are becoming increasingly involved in utility regulation. While state utility legislation can expand regulator authority, for example in the case of renewable energy or energy efficiency standard administration, it can also reduce it. Given the challenging nature of for-profit monopoly regulation, state utility legislation often reduces regulator authority unintentionally. This editorial begins with an examination of the outcomes of state legislation related to baseload generation in the U.S. and the resulting impacts to customers, shareholders, and state economies. The record indicates that utility regulation through state legislation has caused significant economic harm, generally by encouraging for-profit utilities to make riskier investments. A description of more recent state legislation involving distribution grids is presented, along with evidence that increases in grid investment encouraged by state legislation has not improved the reliability of U.S. for-profit utilities. The authors claim that features common to state utility legislation, particularly the requirement that utilities provide investment plans to regulators in advance, practically eliminates cost disallowance risk. This, in turn, reduces regulator authority despite legislative provisions intended to protect consumers. The authors hypothesize that the practical elimination of cost disallowance risk, combined with information and expertise asymmetry among regulators and stakeholders, encourages for-profit monopoly utilities to make grid investments that are not cost effective. The editorial concludes that legislators should avoid utility regulation through legislation, thereby preserving regulator authority, whenever possible. The authors also present their fifth annual Customer Value Ranking of U.S. investor-owned electric utilities. The ranking represents a comparison of the benefits utilities deliver to customers (measured by reliability performance and customer satisfaction) to the costs customers pay (measured by O&M and capital spending per customer).

ENERGY PLANNING, POLICY, AND ECONOMY,POWER TRANSMI↗
DOE OSTI2022

Alternative Ratemaking in the US: A Prerequisite for Grid Modernization or an Unwarranted Shift of Risk to Customers?

With increasing frequency, investor-owned electric utilities are requesting preferred cost recovery for "grid modernization" in multiple forms, from multi-year rate plans to riders. Utilities' claims that massive grid investment is necessary, and that exceptional investment requires exceptional cost recovery, are typically accepted by policymakers with little challenge. It is difficult for policymakers to resist the siren call of grid modernization's perceived outcomes, from improved reliability and resilience to reduced risks to safety and new customer technology adoption (electric vehicles, distributed energy resources, and more). This paper provides a contrarian viewpoint that is virtually absent as policymakers consider alternative ratemaking practices. It introduces the possibility that excess grid investment in the name of modernization is not only possible, and economically harmful, but has already occurred, encouraged by alternative ratemaking. It provides examples of common grid modernization expenditures the authors have identified as cost-ineffective in the course of their work. It also describes traditional grid planning practices with proven ability to address changing requirements over time, calling into question the need for exceptional grid modernization investment plans. Most important, the paper explains the moral hazard inherent in alternative ratemaking, and the fundamental shift in ratemaking risks and responsibilities from utilities to customers that results. The perspectives this paper presents are critical for policymakers to understand before adopting, extending, or expanding alternative ratemaking practices in their respective jurisdictions.

ENERGY PLANNING, POLICY, AND ECONOMY,POWER TRANSMI↗
DOE OSTI2022

Changes in Hydropower Resource Operations Following Participation in the CAISO Energy Imbalance Market - A Case Study

Portland General Electric (PGE), an investor-owned electric utility serving nearly 900,000 customers in 51 Oregon cities, joined Western Energy Imbalance Market (EIM) – a California Independent System Operator (CAISO) platform for sharing cleaner and more efficient generation resources among multiple states in the Western U.S. While participation in EIM brings a new set of economic opportunities for PGE by capturing flexibility needs in the market, it also changes operational patterns (e.g., more frequent start/stop, off-nominal power output, and ramping) of PGE’s conventional generation fleet, including hydropower units. With 492 MW of hydropower capacity, which constitutes 15\% of PGE’s generation mix, it is important for PGE (as any other EIM-participant utility) to understand how participation in EIM impacts its hydropower assets, and how a techno-economically sustainable operation of those assets could be accomplished. In this paper, a case study is performed with PGE's hydropower generation facilities to assess and quantify EIM-participation driven changes in hydropower operational patterns.

hydropower, operational patterns, energy imbalance↗
DOE OSTI2026

Strategies for Flood Resilience and Grid Investment Among Iowa's Electric Distribution Utilities

Flooding poses a growing threat to Iowa's electric distribution system, yet utilities face significant data and modeling challenges in planning effective resilience investments. This report provides a foundational assessment of how distribution utilities in Iowa, investor-owned, municipal, and cooperative, approach resilience planning, with a focus on flood risk. It combines hazard characterization, review of state and utility practices, and application of NLR's Energy Resilience Analysis for Distribution Systems (ERAD) and Capacity Expansion Decision Support for Distribution Networks (CADET) tools. Using FEMA floodplains, Iowa Flood Center depth grids, and utility infrastructure data, the analysis quantifies asset exposure, simulates outage risks, and evaluates resilience strategies such as pole hardening, undergrounding, and substation protection. Results indicate that while feeder-level upgrades provide incremental benefits, the most significant reductions in outage risk are achieved through targeted substation interventions. The report highlights key data gaps, such as limited elevation data and fragility functions, and underscores the need for probability-weighted investment frameworks to address both frequent and catastrophic flood events. These insights aim to support utilities, state agencies, and federal partners in prioritizing resilience investments that safeguard Iowa's electric grid against future flooding.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

State Energy Offices’ Engagement in Electric Distribution Planning to Meet State Policy Goals

NASEO and Berkeley Lab released a new publication on State Energy Offices’ Engagement in Electric Distribution Planning to Meet State Policy Goals. State and Territory Energy Offices develop plans, programs, policies, and projects that have a substantial impact on electric distribution systems. They also can participate in distribution system planning (DSP) processes to help ensure that utilities – consumer- and investor-owned – meet the state’s future energy needs. This paper recognizes the wide spectrum of roles that State Energy Offices can play in DSP processes, including planning for distributed energy resources and grid modernization. It highlights various examples of non-regulatory activities by State Energy Offices including planning, conducting studies, convening stakeholder processes, and implementing programs that inform and contribute to distribution system planning. It also provides examples of State Energy Offices’ engagement in proceedings before their respective public utility commissions. As State Energy Offices face myriad challenges associated with meeting state policy goals, preparing for anticipated rates of distributed energy resource deployment, addressing concerns regarding grid reliability and resilience, and recommending and making long-term investment decisions, the examples provided through this guide can serve as a resource in navigating those challenges.

24 POWER TRANSMISSION AND DISTRIBUTION↗
DOE OSTI2023

Quantifying the Financial Impacts of Electric Vehicles on Utility Ratepayers and Shareholders [Slides]

Widespread electric vehicle (EV) adoption is critical for meeting economy-wide decarbonization goals and, as a result, states are considering enabling policies and rate designs to accelerate EV deployment. EVs can provide possible financial upside to electric utilities and ratepayers in several ways. For example, from the utility perspective, EVs could drive increased electricity sales and new earnings opportunities through increased capital investments. From the ratepayer perspective, increased electric loads from EVs could reduce average all-in retail rates. The degree to which there are net benefits or costs to shareholders and/or ratepayers depends on how EVs are integrated and managed through enabling grid investments and charging strategies. Using Berkeley Lab’s Financial Impacts of Distributed Energy Resources (FINDER) model that mimics the electric utility investment planning and ratemaking processes, we estimate the utility earnings and customer rate impacts of EVs using a bookend approach of “managed” (i.e., best case) and “mismanaged” (i.e., worst case) charging strategies for a generic summer-peaking, investor-owned, and vertically integrated utility. The analysis also examines the sensitivity of results to different assumptions of EV deployment characteristics, EV impacts on retail electricity sales, incremental distribution system costs, EV charging location, and utility EV enablement costs (i.e., utility costs to invest in EV charging, controls, and communication to deliver and administer EV programs). The results are intended to inform EV policies and deployment strategies that maximize utility system benefits and minimize ratepayer costs.

29 ENERGY PLANNING, POLICY, AND ECONOMY↗