center for partnerships & innovation

NARUC Center for Partnerships & Innovation

Electricity System Transition

Electric System Transformation

As the U.S. electric grid continues to change, NARUC CPI has been working to help state public utility commissions address evolving grid planning challenges and opportunities. Current topics include: distribution systems and planning; comprehensive electricity planning (through the NARUC-NASEO Task Force on Comprehensive Electricity Planning); performance-based regulation; valuation; and, transmission-distribution system coordination (through the National Council on Electricity Policy).

Since 2017, NARUC has partnered with Lawrence Berkeley National Laboratory (LBNL) to provide public utility commissions with regional, in-person training on electric distribution systems, utility distribution system planning, and state engagement in distribution planning. Training sessions are customized to each region and have also included topics such as: planning for resilience and reliability, scenario modeling, hosting capacity analysis, and approaches to assessing locational net benefits. Learn More

Highlighted Resources

NARUC and the National Association of State Energy Officials (NASEO) are providing a forum for the development of state-led pathways toward a more resilient, efficient, and affordable grid. The NARUC-NASEO Task Force on Comprehensive Electricity Planning is a two-year initiative supporting the development of tools and roadmaps for closer alignment of resource and distribution system planning processes. Learn more

Highlighted Resources

As electricity demand has declined, use of distributed energy resources has expanded, and new technologies can increasingly provide ancillary services to the grid, public utility commissions and stakeholders are exploring novel approaches to valuing and compensating customers, solution providers, and utilities. NARUC has supported a variety of initiatives aimed at plotting new courses for consistently and transparently determining the values of different resource investment options.

One category of evolving valuation and ratemaking approaches is often referred to as utility business model changes. NARUC operates a dynamic simulation exercise, called the MegaModel game, to support members’ experience with and understanding of cost-of-service and performance-based regulation (PBR). NARUC also facilitates a PBR state working group to enable commissioners and commission staff to explore the degree to which PBR can be a valuable tool for balancing the public interest with the financial requirements of utilities. In this forum, NARUC supports peer-to-peer and expert exchange to enable states to explore key questions about performance incentive mechanisms, how to structure risks and rewards, considerations from other states, and lessons learned from past approaches. These efforts are in addition to explaining fundamental financial concepts such as rate of return calculations. Learn More

Highlighted Resources

The National Council on Electricity Policy (NCEP), an initiative of NARUC CPI, is a collaborative forum for state-level electricity decision-makers to share and learn from diverse perspectives on the evolving electricity sector at the state, regional, and national levels. Participants include representatives from public utility commissions, air and environmental regulatory agencies, governors’ staffs, state energy offices, legislatures, and consumer advocates. NCEP offers a unique opportunity for state electricity decision-makers throughout the country to examine the ways new technologies, policies, regulations, and markets impact state resources and the bulk power system. NCEP facilitates an annual meeting, connections to virtual resources, and webinars for members to explore multiple perspectives on complex electricity system issues. Learn more

Highlighted Resources