The Affordability Case for a Distribution System Operator 

With affordability now the defining issue in electric utility regulation, is building more grid infrastructure the most cost-effective way to meet growing grid needs? A new research effort led by Current Energy Group, with support from GridLab, and in collaboration with RMI and the Regulatory Assistance Project, focuses on an alternative pathway through distribution system operator (DSO) models.

A DSO model treats customer-sited energy devices and small-scale generators as resources, enables real-time visibility into the local grid, signals when and where flexible devices can help, and pays customers and their representatives for the support their devices provide. When done well, less infrastructure gets built, the system operates more efficiently, and bills stay lower for everyone.

DER Potential to Address Load Growth in Michigan, North Carolina, & Virginia

Distributed energy resources (DERs) are uniquely positioned to address today’s planning challenges. Fast to deploy, cost-effective, modular, and scalable, DERs deliver cost savings, reduce planning risks, and enable customers to directly participate in the energy transition. This study evaluates the potential for DERs to meet electricity needs in Michigan, North Carolina, and Virginia.
Using CEG’s hourly optimization model, the study identifies the cost-effective DER portfolio for these states in the 2030 and 2035 planning years, yielding substantial results.

Cost-Competitive Alternatives to New Utility-Owned Generation
Key stakeholders from Iowa’s business community have become increasingly concerned that cost-effective alternatives, such as DERs, are being excluded from the electric system in favor of high-cost capacity investments to meet growing electricity demand. This report presents a detailed, independent technical analysis of one alternative: community solar. When well-designed, community solar can benefit both participating program subscribers and non-participating electric customers.

Beyond the Power Plant: The Hidden Costs of Gas-Fired Generation

As utilities across the country rush to build new gas power plants to meet surging electricity demand from data centers, a new report from GridLab and CEG reveals that the price tags regulators approve systematically understate what customers will actually pay. The report finds that mandatory gas infrastructure costs for transportation, processing, and storage routinely add 30% or more to the true cost of a new gas plant, yet are almost never included in the regulatory proceedings where generation decisions are made.

Duke Energy Carolinas Substantially Reduces 2025 Rate Request in Settlement Position, Following CEG Testimony for the North Carolina Attorney General's Office (AGO)

On behalf of the North Carolina AGO, CEG experts submitted direct testimony for the Duke Energy Carolinas 2025 rate case, Docket No. E-7, Sub 1329. Duke originally proposed a 15% overall rate increase (18% for residential ratepayers), which would impose nearly $1 billion in costs on ratepayers over the next two years. Our testimony focused on fair return on equity, analyzing DEC’s multi-year rate plan framework and cost of service study, and dedicated customer classes and tariff structures for large-load customers.

Since then, Duke has substantially reduced its rate request in its rebuttal and settlement positions, subject to review and approval by the NC Utilities Commission, proposing an overall rate increase of 7.4% (9.5% for residential ratepayers) over the next two years. Other reductions thus far include: $855 million in annual customer savings, a 115-basis-point cut to Duke’s authorized return on equity, and $341 million in new gas combined-cycle plants removed from the rate base. Additionally, the settling parties have agreed to a separate proceeding to evaluate a large-load tariff, with the intention of completing it before new rates take effect.

Massachusetts Department of Public Utilities (DPU) Approves National Grid's Targeted Electrification Pilot, Adopting CEG Recommendations

This month, the Massachusetts DPU approved National Grid's targeted electrification demonstration project in D.P.U. 24-194, adopting several recommendations from CEG testimony on behalf of the Environmental Defense Fund, Conservation Law Foundation, and Sierra Club. The pilot will decommission up to 14 segments of leak-prone pipeline in Winthrop and Leominster if targeted customers voluntarily electrify their homes. It’s also the first targeted electrification demonstration project the DPU has ruled on under its D.P.U. 20-80-B framework, a new regulatory framework to guide the natural gas distribution industry’s transition to clean energy, with five more pending.

No party opposed pilot approval — only the amount it should cost and how the cost should be recovered. The DPU adopted a compromise budget that fell between our lower budget recommendations and National Grid’s higher budget request. Additionally, they adopted several of CEG Senior Manager Meera Fickling's program design recommendations, including:

• Require National Grid to report on the effectiveness of smart panels as a peak demand management tool.

• Direct National Grid to auto-enroll participants in its ConnectedSolutions demand response program.

• Require National Grid to designate at least one Company representative for community outreach.

• Encourage National Grid to include a winter demand response program in its next energy efficiency plan.

Oregon Public Utility Commission Adopts Multi-Year Rate Plan Framework

CEG congratulates the Oregon Public Utility Commission (OPUC) on its adoption of a multi-year rate plan (MRP) framework, a culmination of extensive research, design decisions, and collaboration with key stakeholders.

This Phase 1 milestone builds on the MRP report CEG prepared for OPUC last fall, which presented a taxonomy of MRP types and design elements, and performance-based regulation components for regulated electric and gas utilities. The report also identified key characteristics of successful MRPs, established minimum design standards to support constructive outcomes and mitigate common challenges, and highlighted best practices.

Utilities today are navigating changing load conditions, inflationary pressures, growing infrastructure investment needs, and heightened expectations for affordability, reliability, resilience, and emissions reductions, all while the frequency and administrative burden of rate proceedings continue to rise, creating challenges for utilities, stakeholders, and regulators alike. The transition to well-designed MRPs is an opportunity to address these pressures and support long-term planning, cost discipline, and effective regulatory oversight.

Congratulations to OPUC on this achievement. We’re grateful for the opportunity to support PUC Staff throughout this process.