Date of Award


Degree Type


Degree Name


Degree Program

Engineering and Applied Science - Engineering Management


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


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.


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