The Center for Urban Policy Research (CUPR) has released a new report titled “Modern Rate Design in the Northeast: Unlocking Efficiency, Affordability, and Electrification.” The report examines how electricity rate structures in the Northeast and Mid-Atlantic regions can be updated to address rising energy costs and evolving consumption patterns.
According to the executive summary, these regions face some of the highest energy costs and burdens in the United States. Factors contributing to increasing prices include higher demand from data centers, rising supply costs for gas and electricity, and growing investments by utilities in transmission and distribution infrastructure. The report notes that new technologies such as advanced metering infrastructure, heat pumps, and electric vehicles are changing when and how people use electricity.
While some utilities have introduced time-varying or technology-specific rates, most customers still pay under traditional two-part rate structures. The report argues that modernizing these rates could help lower customer bills, reduce peak demand on the grid, support state electrification goals, and increase overall efficiency.
“Utilities and regulators have long used rates to drive energy efficiency. Today, emerging priorities often compete with other objectives, including aligning prices with electrification, optimizing grid use, and ensuring affordability. Modernizing rates can accomplish these priorities and optimize the way we use electricity,” states the report.
The paper provides a framework for regulators, policy officials at the state level, utilities, and stakeholders to consider four main priorities when designing modern rates: maintaining incentives for energy efficiency; aligning rates with new usage patterns from electric technologies; encouraging demand flexibility; and supporting equity along with affordability.
The Edward J. Bloustein School of Planning and Public Policy at Rutgers University is involved in research related to community development, transportation, health initiatives, workforce development programs as well as energy policy through its various research centers (official website). The school operates as part of Rutgers University in New Jersey (official website) where it offers undergraduate and graduate degrees focused on planning and public policy (official website).
The Bloustein School aims to foster equitable communities while addressing issues like environmental sustainability at both local and global levels (official website). It holds national rankings for its academic programs—including third place for its graduate urban planning program—and is accredited by professional organizations (official website).