ProRate is a mechanism that provides customers direct access to the wholesale electricity market, thereby incentivizing choices that benefit that consumer, other rate-payers, the utility itself, and the environment with a free-market solution without any government subsidies.
ProRate satisfies right-leaning viewpoints with optional "opt-in"
participation, and a subsidy-free, free-market solution while satisfying
desires that address climate change issues - it's a political winner.
ProRate's implementation has a few requirements, such as "smart meters", and of course a regulatory structure permitting it. Beyond this, it's then up to the energy consumer to make good choices.
Based on the 5-minute wholesale market, ProRate has two fundamentally
electricity pricing formulas. The first, known as CLEP5, applies year round,
while the second, called CLEPm, applies only during high energy demand
and rewards customers for lowering their energy use during critical time
Each provides profit to the utility for the pass-through services they
and an additional fee that lowers the electricity price for others.
This strategy incentivizes energy consumers to apply sensible, money-saving strategies that benefit all by pricing that, as compared with non-ProRate pricing, "pays" consumers to use energy at less-expensive times or to install equipment to lower their bill. Among these choices are changing time of use, lower-consuming devices, solar PV (especially Community Solar), and a critical option for some communities, a battery. Batteries - and especially when combined with solar - can benefit everyone involved, increasing grid stability, providing resilience during power outages, providing energy at vital times that reduces the need for stand-by power ("spinning reserve"), and can even provide users profit, converting them into a "prosumer".
For more, of course, please see the column to the right!
For many of the following materials it is very important to know that ProRate was originally called CLEP! So, please don't be confused by that
Because we're an under-staffed volunteer organization, we know we can't alone support this into the future without appropriate public support. We therefore humbly ask for your donation.