Date of Award
5-2024
Degree Type
Dissertation
Degree Name
Ph.D.
Degree Program
Engineering and Applied Science - Engineering Management
Department
Engineering Management
Major Professor
Ahmed Adeel Syed, PhD
Second Advisor
Mark Kulp, PhD
Third Advisor
Bahadir Inozu, PhD
Fourth Advisor
Paul J. Schilling, PhD
Fifth Advisor
Abdul Rahman Alsamman, PhD
Abstract
A century-old problem of electricity rate design is cost-shifting between ratepayers (Wellinghoff, J. & Tong, J., 2015). A much newer cost-shifting example of great and increasing importance happens whenever ratepayer generated “renewable energy” is sold to the grid—all too often, this is accused of being unfairly rewarded (Ritchie, 2016). ProRate resolves both these concerns and ProRate can actually be derived simply from the premise of avoiding “all” cost shifts between ratepayers (Katz, CLEPm Rewards to Arrest Demand Cost-Shifting, 2019; Katz, CLEP5 Rewards to Arrest Energy Cost-Shifting, 2019). Another major problem with the Old Utility Model is the lack of price signals (Electric Choice, 2012; Duncan, 2017; Faruqui, Hledik, & Palmer, 2012; Milliner, 2019). ProRate utilizes time-varying rates for both energy and demand to eliminate cost-shifting onto others and provides fair compensation to locally generated and/or locally stored electricity—both to improve grid reliability, reduce instantaneous demand needs, and, importantly, reduce the carbon footprint of all ratepayers (Price Electric, 2015). In this paper, I suggest ProRate adoption, strategies, as well as address implementation challenges that when addressed alongside giving ratepayers access to net metering and the wholesale marketplace of energy (MISO), gives ratepayers benefits. I demonstrate that these benefits include economic, environmental, and enhancing moral agency of ratepayers. Finally, I suggest where future research can be optimally directed, while giving blueprints and tools to help demonstrate a future pilot’s successful adoption.
Recommended Citation
Moore, Brendan J., "Innovative Rate Design as a Free Market Solution to Climate, Resiliency, and Economic Challenges" (2024). University of New Orleans Theses and Dissertations. 3155.
https://scholarworks.uno.edu/td/3155
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Rights
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