What Is Consumer Regulated Electricity? The Build-Your-Own-Power Idea Spreading in Statehouses
Consumer-Regulated Electricity, or CRE, allows private companies to build their own power sources – like solar farms, gas generators or even small nuclear reactors – without connecting them to the larger grid.
The policy is designed to address two big issues that consumers and businesses are increasingly running into. Companies are finding a utility system that’s too slow, too costly, and too regulated to deliver the power they need. At the same time, electricity prices are increasing quickly – an added cost for everyday homeowners.
…The policy also exempts these power sources from a number of regulations that would typically apply. Free from the strictures of utility rules, off-grid producers can experiment with new technologies and designs.
To be clear, CRE is not the “Wild West” of electricity. Companies would still be subject to environmental and permitting laws, building and fire codes, workplace safety standards, and approvals. All this does is remove onerous utilities regulations….
…When big economic development projects get announced, utility companies tend to respond by pushing for higher rates so they have money to build new generation capacity.
If the projects don’t materialize, ratepayers are still on the hook for all those costs. With CRE, the companies themselves bear the risk and can match the power generation project to the business.
…Consumer Regulated Electricity is a practical fix to real problems. It gives states a way to accommodate new industrial demand without overhauling the entire grid or relying on subsidies.
…Rather than forcing every project through a slow, centralized system, CRE allows new supply to come online when and where it’s needed.
