General performance-based ratemaking could assistance lessen racial inequities in vitality burdens.
The NAACP has extended emphasized the relevance of environmental and climate justice to marginalized communities, including problems in the electrical power sector. Persons of coloration and minimal-cash flow persons in the United States have better strength burdens, reside in less power successful houses, and have significantly less accessibility to distributed strength technology such as rooftop photo voltaic. Conventional charge-of-assistance ratemaking presents perverse incentives that have exacerbated racial inequity in strength.
Efficiency-primarily based ratemaking procedures, by contrast, current alternatives to remove these incentives, but their entire opportunity to encourage fairness