Rate Design

Rate Engineering is the most effective approach to developing new rates that achieve utilities’ financial and policy goals.

Challenge

Traditionally utilities have developed rates by leveraging energy consumption data from a fraction of sample customers, known as the sampling approach. This rate design approach often introduces significant sampling error. As rates become more complex, the sampling error increases. Read more about sampling error in our ‘Church Design’ article.

Solution

GridX has pioneered the Rate Engineering approach to rate design – using the whole customer population’s data to develop rates, without the need for the sampling. This approach enables utilities to develop rates to better achieve business and policy goals. With the GridX Rate Engineering and Analysis Tool, new rate designs can be implemented quickly, and the bill impacts for all customers and revenue impacts for the utility can be simulated immediately.

Outcomes

  • Quickly implement new rate designs and revise existing rates with GUI based tariff modeling
  • Bill impact analyses for the whole customer population and revenue impacts for the utility analyses cycle with integrated rate analysis capabilities
  • Better achieve financial and policy goals with the elimination of sampling errors
  • Achieve optimal rate design with large-scale simulation
  • Ability to segment customers based on a variety of attributes and create segment-based load profiles by aggregating interval data

Why GridX

The GridX Rate Engineering approach has revolutionized utility rate design. By using interval data from the whole customer population, and simulating the financial performance for a large number of rate design parameters, Rate Engineering has been proven to be the most effective approach to developing new rates that achieve utilities’ financial and policy goals.

Related Content

Rate Design Product

The GridX Rate Design Tool (REAT) enables utilities to develop, evaluate and optimize rate designs by using whole customer population energy consumption data without the need for sampling.

Whole Population Rate Analysis

Whole Population Rate Analysis is the process of calculating bills for an entire utility’s customer population.

Rate Engineering

Rate Engineering, driven by Whole Population Rate Analysis, is the future of Rate Reform.