The Northeast is home to some of the highest energy costs in the country, and with demand continuing to rise, affordability is an urgent concern. For decades, rate design has been an important tool to manage costs and encourage efficiency. Yet traditional approaches have not kept pace with new technologies or evolving policy goals. The result is customers are left without the incentives they need to save energy and keep bills manageable.
At the same time, the energy landscape is changing. Advanced meters and electric technologies are opening new possibilities to modernize rate design. By sending price signals that reflect the true costs of the energy system, we can help customers make smarter choices about when and how they use electricity.
This report provides a framework for regulators, utilities, and policymakers. The report explores how modern rate design can drive energy efficiency, align with electrification, encourage demand flexibility, and embed equity and affordability into the very structure of rates.
Drawing on practices already emerging in the region — from time‑of‑use rates to peak time rebates and seasonal structures — the report illustrates how smarter rate design can be layered with customer education and protections for vulnerable households. Together, these strategies can ensure affordability, optimize grid use, minimize costs, and advance state policy goals.
With energy costs continuing to rise, the need for a modern approach has never been greater.
