24/7 Carbon-Free Electricity Transition Tariffs: A Regulatory Tool for Accelerating Decarbonization

CIN Admin
CIN Admin
  • Updated
Resource Type Policy Brief
Author / Source Linvill, Enterline, Farnsworth, Kadoch, LeBel, Seidman (Regulatory Assistance Project)
Publication Date March 2024
Location United States
Initiative Type Policy, Program, Technology
Project Complexity Advanced
Recommended For Board, Staff

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Estimated reading time: 30+ minutes


Why This Matters for Rural Electric Co-ops

Traditional renewable energy rates often match annual consumption with clean energy generation, but they do not address when electricity is used or where emissions occur on the grid. For rural electric cooperatives, 24/7 carbon-free electricity rates offer a framework to align pricing, planning, and investment decisions with real-time system needs, improving both affordability and reliability. These rates can help guide investments toward resources that reduce emissions during the highest-impact hours while maintaining system performance.


Key Takeaways

24/7 transition tariffs aim to match electricity consumption with carbon-free supply on an hourly basis rather than annually.
Well-designed rates can drive investment in resources that address high-emission hours and locations on the grid.
Five core design principles include integration with utility planning, accurate emissions tracking, and aligned rate design.
Transition tariffs can improve reliability and resilience while accelerating decarbonization.

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Estimated reading time: 30+ minutes

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