Back to CESC

A Review of Alternative Rate Design: Industry Experience with Time-Based and Demand Charge Rates for Mass-Market Consumers


Rocky Mountain Institute


Aman Chitkara

Dan Cross-Call

Becky Li

James Sherwood


1 May 2016

This report provides a meta-analysis of numerous existing studies, reports, and analyses to support an objective assessment of the efficacy of time-based rates and demand charge rates for mass-market customers. The report (1) provides a structure for utilities, regulators and stakeholders to design and evaluate time-based and demand charge rates, (2) identifies major design choices required for each rate and reviews options for those dimensions, (3) indicates whether empirical data confirms (or refutes) the potential benefits of each rate and notes where clear evidence is unavailable, (4) determines best practices that can help achieve and maximize desired outcomes, and (5) highlights areas where further study is needed.