Consider Alternative Rate Design (EGU Action 1.1)

To the extent that it reduces or does not raise electricity costs and manages the risk to the utilities, consider identifying and implementing appropriate alternative rate designs (e.g., decoupling) for utilities in order to remove obstacles to increasing energy efficiency. Existing rate structures may conflict with the State's energy efficiency and alternative energy goals, in that traditional rate design is based upon "throughput" incentives for utilities to sell more energy (e.g., kWh, therms) in order to increase their annual profits. Advocates of alternative rate structures believe that these mechanisms are a necessary ingredient to obtain strong utility support for energy efficiency and would complement other demand side management programs. Consumer advocates have raised issues regarding rate impacts and the potential for customers unfairly bearing all risks related to providing electricity. New Hampshire should explore these issues and develop a fair approach to new rate mechanisms that protect consumers and provide appropriate incentives to utilities to promote energy efficiency.