Policy Solutions: Ancillary Service Payments

The electricity system of the future must compensate customers when they provide services such as conserving energy during peak periods and investing in renewable energy, especially in response to state and federal carbon-reduction legislation.

Suggested reading on ancillary service payments:

• Smart Meters and Smart Pricing: A Win-Win for Communities and Consumers
  This issue brief details what smart meters and smart pricing are, how they function, the benefits they provide, a business case for their adoption, and an outlook on state and federal policies.
• Plug-In Hybrid Electric Vehicles: Electricity in the Driver's Seat
  This article by the Initiative's Kurt Yeager examines how electric utilities and municipalities must modernize the grid to help consumers easily and reliably charge their cars.
• Renewable Energy: A Smart Grid is a Green Grid
  This article by the Initiative's Kurt Yeager examines how smart grid upgrades will better incorporate renewable energy sources such as wind and solar power.

For further reading:

• "Microgrids: A Critical Component of U.S. Energy Policy" Presentation by John Kelly, Deputy Director of the Galvin Electricity Initiative