Renewable Energy as a Hedge Against Fuel Price Fluctuation: How to Capture the Benefits

This paper demonstrates the benefits of renewable energy as a hedge against electricity market fuel price fluctuation. It considers how regulators and electricity customers may address this opportunity either as a socialized cost/benefit scenario (by including renewable energy in the rate base), on an individual customer basis (through green pricing options that convey price stability benefits, via on-site installation of renewable energy generation technology under different business models, and through fuel switching), or through several approaches simultaneously.