Time of Use (TOU) Rate Design: Advantages, Issues & Challenges

Time of Use (TOU) Rate Design: Advantages, Issues & Challenges

March 26-27, 2024 | Online :: Central Time

“Being relatively new to ratemaking, this conference provided a solid overview from the legal & policy history to current topics. The speakers were knowledgeable and addressed all questions that came in.” San Diego Gas & Electric

“EUCI delivers relevant content and provides an excellent forum for networking and benchmarking with others in the utility space.” Senior Specialist, Con Edison

The demand for innovative rate structures – particularly Time-of-Use (TOU) pricing for residential customers – has never been more pronounced. The growth in rooftop solar can reduce utility revenue under traditional rate models, and the promising potential of electric vehicles (EVs) to lower emissions and transportation fuel costs necessitates careful rate design to maximize benefits for all stakeholders.

Utilities find themselves in a unique position. Through pioneering rate design, they can shape the future of EV charging, minimizing grid costs while delivering fuel savings to customers. Modern TOU rates must reflect the true costs of service and incentivize behaviors that align with broader societal goals.

This conference offers an opportunity to engage with utility leaders and industry experts, who will provide deep insights into the challenges, pain points, and solutions regarding TOU rate design.

Join us to explore the changing landscape for determining marginal and avoided costs, gain conceptual and institutional background information, review technical underpinnings, and receive actionable recommendations.

Learning Outcomes

  • Analyze the intricate rules and guidelines that shape TOU models, including their impact on utility providers and consumers
  • Articulate the importance of aligning rate design with regulatory frameworks and evolving customer needs to achieve fair and competitive pricing
  • Explore the economic and operational benefits of TDRs in peak load shifting, including cost savings and improved grid reliability
  • Examine the successful implementation of Time-of-Use (TOU) pricing options in the residential sector with the integration of smart meters and pilot programs
  • Identify the potential advantages and challenges associated with introducing fixed charges and electrification rates into TOU pricing
  • Assess the potential benefits of implementing dynamic rates for customers and utilities, including the optimization of energy consumption, cost savings, and grid efficiency
  • Formulate strategies for introducing and optimizing residential demand rates tailored to EV charging, addressing the evolving needs of customers and promoting the growth of electric vehicles
  • Evaluate the economic benefits of encouraging off-peak EV charging through innovative rate design

Agenda

Tuesday, March 26, 2024 : Central Time

8:45 – 9:00 a.m.
Log In and Welcome

1:15 – 2:15 p.m.
Lunch Break

9:00 a.m. – 5:00 p.m.
Conference Timing

 

9:00 – 10:00 a.m. :: Time-of-Use (TOU) Overview: Regulatory Frameworks and   Insights

This session centers on the critical aspect of regulatory frameworks and offers deep insights into the realm of TOU pricing. Attendees receive a comprehensive examination of the intricate rules and guidelines governing TOU models, and the complexities and compliance requirements faced by utility providers and consumers alike.

Dr. Ahmad Faruqui, Economist-at-large

10:00 – 11:00 a.m. :: Ratemaking Process and Pricing Strategies

Fair and competitive rates become a win-win when the design process seamlessly aligns with regulatory frameworks and the constantly evolving needs of customers.

This session will provide attendees with practical insights into innovative pricing models and effective customer engagement strategies, equipping them with a deeper understanding of how to strike the right balance between regulatory compliance and meeting customer expectations.

Jessica Hobbick, Director, Rates and Rate Strategy, Arizona Public Service

11:00 – 11:15 a.m. :: Morning Break

11:15 a.m.  – 12:15 p.m. :: Case Study: Snohomish PUD’s Strategy Towards Acquiring Peak Load Shifting with Time-of- Day Rates (TODs)

This session covers the lessons learned from SnoPUD’s residential Time-of-Day Pilot, linkages to the Integrated Resource Plan, and rate/program design objectives as a full-scale rate is made available. In addition, the utility’s perspective on the rollout of multiple TDRs option and their alignment with residential customer segments are discussed. Peter Dauenhauer, Principal Utility Economist, Snohomish County PUD

Peter Dauenhauer, Senior Manager, Rates, Economics and Energy Risk Management, Snohomish County PUD

12:15 – 1:15 p.m. :: Case Study: El Paso Electric’s Residential TOU Options with Smart Meters & Pilot Programs

This case study will share how El Paso Electric enhances its residential customer experience with volunteer TOU options while at the same time implementing smart/interval meters.

Learn about the development of TOU pilot programs, set to be filed in New Mexico and Texas this year, before any permanent TOU filings are requested.

George Novela, Director, Economic and Rate Research, El Paso Electric

1:15 – 2:15 p.m. :: Lunch Break

2:15 – 3:15 p.m. :: Case Study: Evolutions in TOU Pricing to Support Electrification

This session will cover how TOU pricing evolves to support electrification, addressing California’s newly proposed fixed charge, as well as electrification rates.

Miriam Fischlein, Manager, Residential Rate Reform, Southern California Edison

3:15 – 3:30 p.m. :: Afternoon Break

3:30 – 4:30 p.m. :: Case Study: Southern California Edison’s Flexible Pricing Rate Pilot

This session will provide an overview of SCE’s Flexible Pricing Rate Pilot, which is testing out a dynamic rate based on electricity market prices for their residential and business customers with controllable equipment.

Eva Molnar, Senior Manager, Pricing Implementation, Southern California Edison

4:30 – 5:00 p.m. :: Open Q&A

5:00 p.m. :: Conference Adjourns

 

Wednesday, March 27, 2024 : Central Time

8:45 – 9:00 a.m.
Log In

9:00 a.m. – 12:00 p.m.
Conference Timing

9:00 – 10:00 a.m. :: Case Study: Ameren Illinois Electric Vehicle Charging Program

This session will cover the introduction of Ameren Illinois Electric Vehicle rider in 2020. Learn about how the residential demand rate was designed, the customer response, and how this Rider fits with Ameren Illinois’ effort to support Illinois’ Electric Vehicle goals.

Tori Kilhoffer, Manager, Rates and Analysis, Ameren Illinois

10:00 – 11:00 a.m. :: Rate Design and EVs

Electric vehicles are a good example of a flexible new load that is well suited for TOU and other types of time-varying rates. EV adoption can be encouraged, and good charging behavior for the grid can be incentivized as well.

This session will look at rate design holistically and will illuminate the full range of reasonable options for EVs and rate design.

Mark LeBel, Senior Associate, Regulatory Assistance Project

11:00 – 11:15 a.m. :: Morning Break

11:15 a.m. – 12:00 p.m. :: Panel: Emerging Technologies

In this session, industry leaders and innovators gather for an engaging panel discussion on Emerging Technologies in TOU design. Gain valuable insights into how these technologies are revolutionizing the way utilities operate, optimize energy distribution, and meet the evolving needs of consumers.

12:00 p.m. :: Conference Adjourns

Workshop

Performance Based Regulation (PBR): Principles of Incentive Regulation and its Applications in North America

Wednesday, March 27, 2024 : Central Time

12:15 – 12:30 p.m.
Log In

12:30 – 3:30 p.m.
Workshop Timing

From utilities, regulators, and consumers, all stakeholders in the electric and gas utility industry can benefit from efficiency gains obtained through innovative regulation. Many utilities are looking at alternative ratemaking approaches, including performance-based regulation (PBR), to respond to changing customer needs, and decouple cost considerations from load changes. Attend this course to examine the principles of both traditional and alternative regulation. The course will show the momentum of PBR across North America and where individual states are regarding implementing or pursuing PBR. A regulatory perspective and several utility case studies will be shared in this workshop.

Learning Outcomes

  • Gain a comprehensive understanding of both traditional and alternative regulation models in the electric and gas utility industry, exploring the principles and mechanisms that govern each approach
  • Acquire in-depth knowledge of performance-based regulation (PBR) and its application in the utilities sector
  • Examine the regional landscape, understanding where individual states stand in terms of implementing or pursuing PBR, and the factors influencing their decisions
  • Compare diverse regulatory perspectives and real-world case studies from utilities in the electric and gas industry

Agenda

History

  • Review the original concept of incentive regulation
  • Modifications over time, particularly in recent years
  • Lessons learned – what has worked and what hasn’t
  • Jurisdictions where the concept is currently in place or being evaluated

Elements of PBR, Reviewing Pros & Cons

  • Multiyear rate plans
  • Price caps and revenue caps
  • Performance incentive mechanisms (PIMs)
  • Benchmarking
  • Decoupling

Workshop Instructors

Nicholas A. Crowley, MS (University of Wisconsin–Madison). Mr. Crowley is a Senior Economist at Christensen Associates Energy Consulting. He has prepared memoranda, presented to utility executive teams, and organized conference workshops on alternative regulatory regimes currently in place in North America. He has calculated total factor productivity measures for the electricity and gas sectors and developed indexes for use in performance-based ratemaking. He has also performed cost benchmarking analysis and assessed earnings sharing mechanisms for use in PBR frameworks. Mr. Crowley recently co-authored an analysis of the impact of performance-based regulation on Canadian utilities in Utilities Policy. He assists electric utilities in measuring cost of capital and preparing cost-of-service studies for rate cases. He has also measured price responses by customers participating in leading demand response programs. Mr. Crowley’s reports have been filed before regulatory authorities across North America. Prior to joining CA Energy Consulting, Mr. Crowley served as an economist at the Federal Energy Regulatory Commission, where he assisted with energy industry benchmarking, the incentive regulation of oil pipelines, and the review and evaluation of natural gas pipeline rate cases.


Dan McLeod, PhD (University of Wisconsin–Madison) is an Economist. Dr. McLeod’s background is in empirical industrial organization and applied econometrics. Recently, he has been involved in the data analytics and calculation of TFP growth for performance-based regulation of electric utilities. He has also reviewed benchmarking studies and developed related intervenor questions for regulatory proceedings in Canada. His work also covers antitrust litigation, railroad costing analyses, and projects for the U.S. Postal Service that quantify how costs respond to changes in mail volume.

Speakers

Peter Dauenhauer, Senior Manager, Rates, Economics and Energy Risk Management, Snohomish County PUD

Ahmad Faruqui, Economist-at-large

Miriam Fischlein, Manager, Residential Rate Reform, Southern California Edison

Jessica Hobbick, Director, Rates and Rate Strategy, Arizona Public Service

Tori Kilhoffer, Manager, Rates and Analysis, Ameren Illinois

Mark LeBel, Senior Associate, Regulatory Assistance Project

Eva Molnar, Senior Manager, Pricing Implementation, Southern California Edison

George Novela, Director, Economic and Rate Research, El Paso Electric

Online Delivery

We will be using Microsoft Teams to facilitate your participation in the upcoming event. You do not need to have an existing Teams account in order to participate in the broadcast – the course will play in your browser and you will have the option of using a microphone to speak with the room and ask questions, or type any questions in via the chat window and our on-site representative will relay your question to the instructor.

  • Microsoft recommends downloading and installing the Teams app if possible. You may also use the Edge browser or Chrome.
  • You will receive a separate email with a unique link to a personalized landing page which will include links to join all sessions of this event.
  • If you are using a microphone, please ensure that it is muted until such time as you need to ask a question.
  • The remote meeting connection will be open approximately 30 minutes before the start of the course. We encourage you to connect as early as possible in case you experience any unforeseen problems.

Register

Please Note: Confirmed speakers do not need to register and are encouraged to participate in all sessions of the event. If you are a speaker and have any questions please contact our offices at 1.303.770.8800

Please Note: This event is being conducted entirely online. All attendees will connect and attend from their computer, one connection per purchase. For details please see our FAQ

If you are unable to attend at the scheduled date and time, we make recordings available to all attendees for 7 days after the event

REGISTER NOW FOR THIS EVENT:

Time of Use (TOU) Rate Design: Advantages, Issues & Challenges

March 26-27, 2024 | Online
Individual attendee(s) - $ 1195.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 4,780.00 (20% discount)
Pack of 10 attendees - $ 8,365.00 (30% discount)
Pack of 20 attendees - $ 14,340.00 (40% discount)

RELATED WORKSHOPS:

Performance Based Regulation (PBR): Principles of Incentive Regulation and its Applications in North America

March 27
Individual remote connection(s) - $ 495.00 each

Volume pricing also available

Individual attendee tickets can be mixed with ticket packs for complete flexibility

Pack of 5 attendees - $ 1980.00
Pack of 10 attendees - $ 3465.00
Pack of 20 attendees - $ 5940.00

Your registration may be transferred to a member of your organization up to 24 hours in advance of the event. Cancellations must be received on or before February 23, 2024 in order to be refunded and will be subject to a US $195.00 processing fee per registrant. No refunds will be made after this date. Cancellations received after this date will create a credit of the tuition (less processing fee) good toward any other EUCI event. This credit will be good for six months from the cancellation date. In the event of non-attendance, all registration fees will be forfeited. In case of conference cancellation, EUCIs liability is limited to refund of the event registration fee only. For more information regarding administrative policies, such as complaints and refunds, please contact our offices at 303-770-8800

CEUs

Credits

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EUCI is accredited by the International Accreditors for Continuing Education and Training (IACET) and offers IACET CEUs for its learning events that comply with the ANSI/IACET Continuing Education and Training Standard. IACET is recognized internationally as a standard development organization and accrediting body that promotes quality of continuing education and training.

EUCI is authorized by IACET to offer 0.9 CEUs for this conference and 0.3 CEUs for the workshop.

Requirements for Successful Completion of Program

Participants must log in and be in attendance for the entirety of the conference to be eligible for continuing education credit.

Instructional Methods

Case studies, PowerPoint presentations, panel discussions, Q&A


Upon successful completion of this event, program participants interested in receiving CPE credits will receive a certificate of completion.

Conference CPE Credits: 11.0
Workshop CPE Credits: 3.5
There is no prerequisite for this Conference.
Program field of study: Specialized Knowledge
Program Level: Basic
Delivery Method: Group Internet Based
Advanced Preparation: None

CpeEUCI is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its web site: www.nasbaregistry.org

 

 

Who Should Attend

  • Utility leaders: executives and decision-makers responsible for designing and implementing rate structures and pricing strategies
  • Industry experts: professionals with expertise in utility rate design, energy economics, and regulatory matters
  • Economists and analysts with a background in energy  economics
  • Stakeholders in the EV industry: charging infrastructure providers, EV manufactures, policymakers
  • Peak load management
  • Energy consultants and advisors offering services to utility companies
  • Product developer and customer strategies
  • Pricing and load research
  • Financial analytics
  • Ratepayer advocates

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