PUC

Paying Utilities For Performance

In most states with regulated, monopoly utilities, utilities are compensation based on two factors: energy sales and a return on capital spent, such as when they build a new power plant. Although energy efficiency standards have been layered on top of this model, the fundamental incentive for the utility remains “build things, get rewards for shareholders.”

Residential Subscribers In Focus As Minnesota Weighs Community Solar Incentives

The residential adder discussion is part of a larger debate over what state regulators can do to ensure community solar is universally accessible. Particularly as these projects catch on with developers in Minnesota and nationwide, sensible policies must ensure equitable distribution of their benefits — from reduced utility bills for subscribers to economic development in the communities they serve.