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EEI predicts the future...

Solar is finally cost-effective enough to represent a threat to utilities. Now PV system owners need to be vigilant as utilities will try to find ways to under-cut them. Xcel has already found an underhanded way around the NM net-meter law... they charge me for every kWh I PRODUCE!!

http://www.eei.org/ourissues/finance/Documents/disruptivechallenges.pdf

But, even if cross-subsidies are removed from rate structures, customers are not precluded from leaving the system entirely if a more cost-competitive alternative is available (e.g., a scenario where efficient energy storage combined with distributed generation could create the ultimate risk to grid viability). While tariff
restructuring can be used to mitigate lost revenues, the longer-term threat of fully exiting from the grid (or customers solely using the electric grid for backup purposes) raises the potential for irreparable damages to revenues and growth prospects. This suggests that an old-line industry with 30-year cost recovery of investment is vulnerable to cost-recovery threats from disruptive forces.
...
While decoupling recovery mechanisms, for example, may support
recovery of lost revenues and costs, under/over recovery charges are typically imposed based on energy usage and, therefore, adversely impact non-participants of these programs. ... In other words, will non–DER participants continue to subsidize participants or will there be political pressure to not allow cost pass thru over time?

Non-participants in power generation are subsidizing those who do generate, and the system is at risk as a result.

Brian, nice quote, cherry picking what you want people to think.
Why did you not quote the paragraph before this one?

Or the last one of the summary:

While the pace of disruption cannot be predicted, the mere fact that we are seeing the beginning of customer disruption and that there is a large universe of companies pursuing this opportunity highlight the importance of proactive and timely planning to address these challenges early on so that uneconomic disruption does not proceed further. Ultimately, all stakeholders must embrace change in technology and business models in order to maintain a viable utility industry

That's a wish: The "economic disruption" is now in process -- wouldn't it be a good idea to stop it?

Why stop there? If we're going to halt progress... oil companies have fixed costs too :) *Sarcasm intended*


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