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CLEP Energy

This site provides information about the only electricity rate design that aligns everyone's interests.

This electricity rate design was first called CLEP, and is now called ProRate.

 

 

A Brief Overview

CLEP - Customer Lowered Electricity Price, or Pricing, also known as 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.

CLEP satisfies right-leaning viewpoints with optional "opt-in" participation, and a subsidy-free, free-market solution while satisfying left-leaning desires that address climate change issues - it's a political winner.

CLEP'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, CLEP has two fundamentally different electricity pricing formulas. The first, known as CLEP5, applies year round, while the second, called CLEPm, applies only during high energy demand periods and rewards customers for lowering their energy use during critical time periods. Each provides profit to the utility for the pass-through services they provide 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-CLEP 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".

Below, much more information is provided, yet the best document written to date can be found here. It's a wite-paper written by four of our principals and has been accepted (August, 2020) for publication in "Process Improvement Journal" (we will provide a link when available).


Understanding CLEP

Electricity customers decide when to use, store, conserve, buy, and sell electricity and these choices may be used to enable CLEP’s features to generate savings & income for the customer. Customers save money just by changing when they use the equipment they already have and can even earn net income if they use CLEP cashflows to fully-finance newer equipment. CLEP can double cashflows from energy efficiency and renewable energy — while lowering everyone’s electricity prices. CLEP is an Opt-In rate that complements your current rate. Here are just some of its remarkable benefits:

CLEP can motivate customers to invest in zero or low-emissions generatino, electrical efficiency, and energy storage!

CLEP provides short pay-back periods for thermal and electric storage investments and makes many improvements cost-effective for the first time!

CLEP flattens peak demand at negative costs to all ratepayers and completely shields users from extraordinarily high-priced "peaking-plants."


Some links to helpful materials:


Contact information:

CLEP Energy Email: Info @ ClepEnergy.org