White Paper

Equity and Electrification-Driven Rate Policy Options

September 14, 2023

Building electrification is a critical climate mitigation strategy for states and utilities, especially as the grid becomes cleaner through carbon-free generation. In most situations, efficient building electrification will reduce overall bills for households. However, households in parts of the country with high electricity rates could face higher bills from fuel switching. In this white paper, we discuss a few emerging solutions that can improve affordability for households and encourage electrification. Possibilities include a percentage-of-income payment program, modification of electricity rates to incentivize fuel-switching, and an income-based fixed charge proposal from California.

White Paper

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Suggested Citation

Yim, E., and S. Subramanian. 2023. Equity and Electrification-Driven Rate Policy Options. Washington, DC: ACEEE.


This Article Was About

Energy Equity Electrification and Decarbonization


Edward Yim
State and Utility Policy Director
Sagarika Subramanian
Senior Research Analyst, State Policy Program
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