EQ + GTM: Where residential demand charges exist


A recent EEI report highlights an alleged “emerging trend” in the electric utility industry of attempts by utilities to introduce demand charges for residential customers. “Three-part rates better capture the nature of costs utilities incur to serve customers and can help diminish cost shifting between customers,” according to the report, “particularly when usage patterns vary dramatically (as is increasingly the case with growing use of rooftop solar and battery storage).”

But are residential demand charges actually a trend? No — at least not yet. Of the approximately 3,000 electric utilities in the United States, only five are known to have imposed demand charges on all residential customers.

Over roughly the last year, 19 investor-owned utilities in 14 states have proposed establishing residential demand charges, either for all residential customers or specifically for DG customers. Nine of these proposals are still pending.

Under a partnership with GTM, EQ offers a handy summary of approved and proposed residential demand charges in the United States. The graphics and data provided include:

  • A clickable U.S. map that indicates approved residential demand charges.
  • A clickable U.S. map that indicates the status of proposed residential demand charges in state PUC proceedings.
  • The status of residential demand charges proposed by IOUs over the past year.

To access this data via GTM Squared, click here. (Use the promotional code EQ50 to receive a $50 discount on GTM Squared membership through July 31.)

EQ Research offers a service that tracks and summarizes regulatory developments relevant to clean energy in all 50 U.S. states. For details, click here.