One of the first things I “learned” in this biz is that increased sales lowers electric rates for all. “Received wisdom,” really. Isn’t that just a between-cases benefit, quickly offset by increased rates due to even more fixed cost spending to serve higher persistent load?
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Replying to @RabagoEnergy
Well yes. You need to improve the load factor with all that electrification
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Replying to @BSmithwood
Wouldn’t the win-win be to not add the load AND reduce the pre-existing peak? I guess I am saying that I don’t like the “lower costs for all” argument for electrification any more that its twin: NEM increases costs by reducing revenues. Seems like playing into the wrong hands.
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Replying to @RabagoEnergy
How are we going to decarbonization if we don’t increase usage (kWh)? I see your point on NEM but the arguement there is that that “lost revenue” is compensation for value- those costs would have shown up elsewhere and at greater magnitude.
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Replying to @BSmithwood
I guess I am worried that some “BE” advocacy breaks faith with strong EE—especially load-shaping EE—advocacy. Not hard to get the utility bear to dance—what’s hard is not letting the bear lead.
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Replying to @RabagoEnergy
Agreed- but isn’t that a good case for more distribution resource planning (and RTOs for the T side)? I was at a utility meeting going through a capital plan and the ratepayer advocate was able to say “so this means, no load driven cap-ex in your next rate case”. A: “Yes”
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Replying to @BSmithwood
Good planning processes with good BCA frames would go a long way to making sure BE is a win-win-win.
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At least in New York, we don't have good formalized BCA frameworks for the fuel-switching cases which are typical of Beneficial Electrification. We need to extend the existing framework to ensure consistent and proper evaluation of Beneficial Electrification.
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