Nature and Society Relations Commons^™

Electricity Rates For The Zero Marginal Cost Grid, Helen Lo, Seth Blumsack, Paul Hines, Sean Meyn

College of Engineering and Mathematical Sciences Faculty Publications

The electricity industry is rapidly changing: costs are increasingly dominated by capital and technology is turning loads into resources. This is similar to the early days of the Internet. Building on rate-structures used in the communications industry, utilities of the future should offer customers a portfolio of service contract options that provide a signal to the utility regarding the type and amount of infrastructure that should be deployed.