What
Create scripts that produce default rate designs that (try to) eliminate cross-subsidies (from HP-alone, HP+ER, eventually solar, etc).
Specifically, we should start with:
- How much do you need to raise the fixed charge to eliminate the configured cross-subsidy
- If we try to eliminate it through seasonal rates only, what would the rates need to be?
- In RI, it turns out you can't eliminate delivery cross-subsidy to heat pumps through seasonal delivery rates alone. Even if winter goes to 0 c/kwh and summer to 20something c/kwh, 5% of the cross-subsidy is still left. Whether a solution exists depends on the state. If a solution doesn't exist, alert the user and output the tariff anyway
- Of course, these two strategies could be combined… a higher fixed charge + some degree of seasonal rates. but there would likely be many revenue-sufficient combinations that also eliminate the cross-subsidy. What criteria would we use to choose one over another?
- Minimal fixed charge?
- Maximum economic efficiency?
- Cost-reflective levels for the seasonal rates + whatever fixed charge makes that possible?
This should integrate with arbitrary delivery and supply residual allocations, so we can choose whether to only change the delivery side of the default tariff to eliminate the delivery cross-subsidy, or do this for both side of the bill (under whatever residual allocation lens we choose).
Why
People often wonder if the cross-subsidy can be solved by redesigning the default rate rather than through tech-specific rates. So it's good to be able to show them if and how it is possible—and also how much the default tariff would have to change.
Even though rate design 3 above would be the most likely in practice, it is helpful to have the extreme cases of "solve this only through the fixed charge" or "try to solve this only through seasonal rate" to show people how dramatic the trade-offs usually end up having to be.
How (optional)
This would still take the YAML output of create_subclass_rr as input.
Think about naming conventions for the tariff JSONs that would be outputted from this and make sure we don't introduce any bugs.
Deliverables
- Code that can do this
- Run it for RI first (compare against JPV ad-hoc version of this)
- Then run it for every NY utility
What
Create scripts that produce default rate designs that (try to) eliminate cross-subsidies (from HP-alone, HP+ER, eventually solar, etc).
Specifically, we should start with:
This should integrate with arbitrary delivery and supply residual allocations, so we can choose whether to only change the delivery side of the default tariff to eliminate the delivery cross-subsidy, or do this for both side of the bill (under whatever residual allocation lens we choose).
Why
People often wonder if the cross-subsidy can be solved by redesigning the default rate rather than through tech-specific rates. So it's good to be able to show them if and how it is possible—and also how much the default tariff would have to change.
Even though rate design 3 above would be the most likely in practice, it is helpful to have the extreme cases of "solve this only through the fixed charge" or "try to solve this only through seasonal rate" to show people how dramatic the trade-offs usually end up having to be.
How (optional)
This would still take the YAML output of create_subclass_rr as input.
Think about naming conventions for the tariff JSONs that would be outputted from this and make sure we don't introduce any bugs.
Deliverables