Energy and Environment Guide to Action - Chapter 7.0: Electric Utility Policies

This document is 'Chapter 7.0: Electric Utility Policies' of the Energy and Environment Guide to Action. States are adopting new or modifying existing utility policies to enable greater investment in energy efficiency, renewable energy, and combined heat and power (CHP). State public utility commissions (PUCs) are aligning electricity resource planning and ratemaking processes to encourage utilities to fully incorporate these resource options into their infrastructure investment and operational decisions. PUCs are also modifying customer electricity rates and interconnection standards to support greater investment by families and businesses in energy efficiency, distributed renewable energy, and CHP. States are also providing policy direction to ensure that new electric grid investments are made and deployed in a manner that maximizes energy efficiency and renewable energy.

This chapter focuses on the authorities that state legislatures have granted to PUCs to regulate electricity rates and reliability, as these authorities directly affect utilities' and customers' investments in energy efficiency, renewable energy, and CHP.