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The document argues that traditional utility business models, based on natural monopolies and centralized generation, are ill-equipped for the rise of distributed energy resources (DERs). It proposes a transition from a linear value chain to a 'value constellation' where the utility acts as a platform for value-based transactions. The paper outlines several potential models, including the Integrated Distributed Resource Manager, the Distributed Resource Finance Aggregator, and the Independent Distribution Network Operator, while discussing international examples of transactive grids and differentiated network charges.

The EDGE model is a modular simulation tool developed by RMI to address the lack of analytical tools for evaluating distributed energy resources (DERs). It integrates resource portfolio planning, bulk power dispatch, distribution system simulation via OpenDSS, and rate/regulation accounting to determine the financial and operational impacts on utilities, customers, third-party providers, and society. While designed for utility or regional scales, it is not intended for national-level analysis or as a replacement for full distribution management systems.

The report examines how the growth of distributed energy resources (DERs), particularly rooftop solar PV, disrupts traditional utility business models in California. It argues that existing volumetric rate structures and net energy metering (NEM) create economic misalignments and cost shifts from solar adopters to non-adopters. To resolve this, the authors propose three building blocks: improving the measurement of DER costs and benefits, implementing pricing models that reflect the actual value of energy based on time and location, and adapting utility business models toward either an 'incentive regulation' or 'network utility' approach.

The document examines the transition of the U.S. electric power sector toward a high-renewable energy future, specifically referencing NREL's goal of 80 percent renewable generation by 2050. It identifies pressures such as aging infrastructure, environmental regulations, and flat load growth that necessitate a new 'social compact' between utilities and regulators. The authors propose a spectrum of utility roles—ranging from a minimal 'wires company' to a maximum 'energy services utility'—and suggest shifting from traditional cost-of-service regulation to performance-based models like the UK's RIIO, the Iowa settlement model, or a comprehensive 'Grand Bargain' to incentivize efficiency and decarbonization.

The document examines the transition toward zero net energy (ZNE) buildings and distributed energy resources (DERs), highlighting the misalignment between traditional utility business models and the bidirectional power flows of ZNE designs. It argues that current volumetric rate structures and net energy metering (NEM) can create economic inefficiencies and equity issues. To resolve this, the authors propose a framework involving more rigorous measurement of DER impacts, the use of price signals to align customer incentives with grid value, and the evolution of utility models toward either incentive-based regulation or a 'network utility' approach. The paper emphasizes the need for metrics that account for short-term grid interaction rather than just annual energy balances.

The report examines the economic viability of 'grid defection'—where customers use solar PV and battery storage to operate independently of the electric grid. It analyzes five U.S. geographies to determine when the levelized cost of electricity (LCOE) for these systems undercuts retail utility prices. The findings suggest that grid parity is already present in Hawaii and is imminent for millions of other U.S. customers, threatening to strand utility assets and trigger a 'utility death spiral' of rising prices and falling sales.