A new report from Guidehouse Research explores how utility companies can leverage new technologies such as advanced metering infrastructure (AMI) and artificial intelligence (AI).
The structure for residential electricity rates has not changed in generations though other aspects of the energy market have evolved profoundly. People can store and generate power, and expect to sell their surplus to the local grid—though they do not always appreciate how their choices affect grid stability. At the same time, regulators are confronting social issues through a variety of rate plan programs. According to a new report from Guidehouse Research, wireless technology has become ubiquitous, with smart meters and consumers with smartphones monitoring power use. However, despite rate plan revolutions, the only innovation that has gained traction is time-of-use rates.
“In recent years, computing capacity and AI increased their ability to discern usage patterns accurately,” says Pritil Gunjan, director with Guidehouse Research. “While some of these involve refinements of existing popular programs and structure, others are new ideas that may surprise some stakeholders. The report’s intent is to challenge established billing methods and look at novel and potentially revolutionary options.”
According to the report, Guidehouse Research recommends that utility companies:
- Leverage disaggregated energy usage data for customer segmentation and tailored development of complex rate structures.
- Create new complex rate frameworks that address a broad variety of customer types (e.g., low to-moderate income, EV owners, and so forth).
- Leverage AI-based software to educate and inform customers about new rate plans and associated benefit streams.
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