center for partnerships & innovation

NARUC Center for Partnerships & Innovation

NARUC-NASEO Distributed Energy Resource Integration and Compensation

NARUC and the National Association of State Energy Offices (NASEO) will convene and support state members in understanding the impact of their decision making related to the connection, operation, and compensation of distributed energy resources (DERs)---within the distribution grid, bulk power system, and wholesale energy markets. NARUC and NASEO will provide information, tools, access to experts, and peer sharing opportunities that assist members with FERC Order 2222 implementation in RTO/ISO regions and state oversight of transmission-distribution-customer (TDC) coordination outside of RTO/ISO regions.

State utility commissions and state energy office officials are increasingly being faced with novel technical issues and policy decisions related to the integration of distribution-connected energy resources. Almost every aspect of the electric utility can be impacted by DER growth, while retail and wholesale rules will also become more intertwined. Policy makers will need to consider many technical and economic issues to prepare for a variety of future paths that are changing rapidly. Ultimately, state energy decision makers individually and collectively want to ensure that these resources are connected and operated in a way that is safe, fair, and supports state goals.

State energy offices have roles in direct and indirect DER program implementation, input and advocacy on needed state-level policy change, and influence in grid planning proceedings.

State utility regulators will have the primary responsibility for oversight of distribution utility actions in response to FERC Order 2222 and other regional and state policies enacted through law or executive action. They will be required to initiate related processes and/or respond to utility proposals to craft tariffs, rules, and other provisions that enable TDC coordination inside and outside of RTO contexts, while incorporating other state-level policy requirements.

The DER Integration and Compensation Initiative is led by an advisory group of NARUC and NASEO members.


  • NARUC and NASEO are grateful to the U.S. Department of Energy, Office of Electricity and Grid Deployment Office and the Office of Energy Efficiency and Renewable Energy for funding the DER Integration and Compensation Project which enables the resources and activities described on this webpage.

Advisory Group Members:

  • Chair Kent Chandler, Kentucky Public Service Commission
  • Alexandra Fisher, District of Columbia Public Service Commission
  • Chair Marissa Gillett, Connecticut Public Utilities Regulatory Authority
  • Robert Jackson, Michigan Department of Environment, Great Lakes, and Energy
  • Commissioner Will McAdams, Public Utility Commission of Texas
  • Joanna Troy, Massachusetts Department of Energy Resources
  • John Williams, New York State Energy Research and Development Authority (NYSERDA)
  • Chair Carrie Zalewski, Illinois Commerce Commission