Value of Electricity versus Cost: Resolving the Customer Benefit Dichotomy in Ratemaking

There is a compelling need for new considerations in the process of ratemaking to allow an explicit linkage between the costs that utilities incur for continuity of service with the value customers derive from the service. Separating the decision rationale for improving the quality of service from investments in enhancing resilience of the system is necessary to ensure the integrity of a critical societal infrastructure.