51st State Ideas I Solutions to the Utility Information Problem
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51st State Ideas I Solutions to the Utility Information Problem

  • Problems with the flow of information in the distribution system
  • Business models for the distributed system operator
  • Recommendations for the future

Should Utilities also be Distribution System Operators?

Energy Innovation’s focuses on the lack of information as a key barrier to reforming utility regulation and the utility business model from builders and maintainers of infrastructure into distribution system optimizers. On the one hand, utilities need to collect and convey data about where value lies on their distribution systems – focusing on integrated distribution planning as a means to get the most out of DERs and grid modernization investments.  As a next step, the utility must find additional avenues for earnings under a new regulatory approach that compensates the utility for improving system efficiency and optimizing DERs. The paper concludes that there is no one-size-fits all approach, but finds promise in greater focus on performance outcomes.

Author: Michael O’Boyle, Energy Innovation

This report was not written by or originated from any member of SEPA staff and SEPA does not endorse any opinions expressed in this paper.

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