The electricity system is shifting from a one-way centralized model to a bidirectional network where users both consume and produce energy. Traditional ratemaking approaches, like net energy metering, fail to account for the complexities of distributed energy resources (DERs), leading to inefficiencies and equity concerns. This report introduces a DER Integration Framework to help utilities and regulators optimize DER contributions and allocate costs fairly. The Grid Services Tariff compensates DERs based on performance, promoting transparency and system reliability. The Export Tariff ensures fair cost recovery by applying traditional ratemaking principles to exporting DERs, enabling proactive grid planning and flexible interconnections.

