Making the Decision to GO RATES

California and fifteen other US states and fifty countries have 100% clean energy goals. Many of these states and countries will pursue electrification of buildings and most forms of vehicle transport.

The new systems in these markets will have lower variable costs and higher fixed costs than the current systems. Customer behind-the-meter load, generation and storage assets will play a much larger role in the systems.

The prime movers in these markets that regulate, generate, store, and move electricity must decide on the type of systems to manage a highly decentralized system with storage and highly variable loads and generation.

The Decision

There are only two alternatives except for muddled hybrids of these two:

Supply-side approach: The status quo where customers are on flat or non-dynamic time-of-use (TOU) tariffs augmented by an array of complex, costly, and ineffective demand response, demand charge, virtual power plant aggregations, technology subsidies, and incentive programs designed to influence their electric investment and operating choices.

The general supply-side approach is for the ISO to take bids from a distribution system operator (DSO) that takes bids from aggregators that are interfaced somehow to customers and distributed energy resources. The ISO then does a dispatch that is communicated to the DSO, then to aggregators and then to customers.

Demand-side approach: A system where the customers oversee their electric investment and operating decisions including automated responses by their electric devices to buy and sell offers from other parties including utilities at fair prices that vary with the supply and demand for clean energy.

RATES implements this demand-side approach, which is much simpler, less costly, and much better as described on this website.

TeMix suggests that a decision to GO RATES is a no brainer. We understand the desire for caution and step-by-step implementation. However, RATES can be implemented on specific circuits, groups of customers with electrified cars, homes, and buildings and eventually for all customers who choose to participate when they are ready. RATES tariffs are designed to benefit all customers including low income customers.  With this incremental approach RATES will continue to improve and gain acceptance.

There are no good reasons for prime movers not to decide to Go RATES.