Distribution

Distribution affordability comes from using the local grid harder before rebuilding it.

The local grid becomes expensive when new load arrives at the wrong hour and forces feeder, substation, and service upgrades that could have been deferred. The tool uses one broad distribution lever centered on utilization: add load off-peak, place flexibility where it matters, and avoid unnecessary capex.

Strategy 7

Improve distribution utilization with off-peak EVs and flexible load

The main distribution idea is simple: large new loads such as EVs do not automatically make the local grid more expensive. They become expensive when they land on the peak. If they move to off-peak hours, the state sells more electricity across infrastructure that already exists and defers a share of local upgrades.

Why it matters: this is the cleanest way to keep electrification from automatically translating into a bigger distribution rate base.

Grid Affordability Playbook LBNL DEPTH tool LBNL retail price trends

Example 1

EV charging moved off-peak

When EV charging follows low-load hours, new demand improves utilization instead of forcing the most expensive local upgrades.

Example 2

Flexible tariffs and non-wires alternatives

Time-varying prices, managed charging, and non-wires planning let utilities solve the right bottleneck instead of overbuilding.

Example 3

Storage placed at local constraints

Even though the simulator uses one distribution lever, the real implementation can combine batteries, targeted upgrades, and demand response.

Policy Tools

How states unlock distribution savings

The local-grid policy story is a mix of smart regulation and smart deregulation: require utilities to pursue non-wires alternatives, but also open room for customer-owned flexibility, third-party aggregators, and cleaner tariffs that reward off-peak behavior.

Rate Design

Push new load off-peak instead of financing every local peak with new capex.

Default time-of-use pricing, stronger on/off-peak price signals, managed charging programs, and large-load tariffs can keep EVs, data centers, and industrial growth from landing on the most expensive hours.

Example: playbook examples include AEP Ohio’s data center tariff, Georgia’s large-customer contract terms, and Virginia’s large-load protections.

Non-Wires First

Require distribution deferral analysis before feeder and substation rebuilds.

States can force a real comparison between traditional local upgrades and targeted storage, demand response, VPPs, and community solar plus storage in constrained areas.

Example: California’s DIDF process and Illinois SB 25’s focus on optimizing grid utilization.

Local Market Access

Open local clean power to customers and aggregators, not just utilities.

Fast-track solar and storage permitting, standardize interconnection, and let third-party providers bring flexible, local capacity to the grid so industry and households can access cheaper power directly.

Example: SolarAPP+ jurisdictions and California’s use of third-party distributed battery aggregators in DSGS.

Deploy Action grid affordability playbook California DIDF / distribution planning SolarAPP+ California DSGS

Use In Simulator

Distribution value is biggest in high-rate states and fast-growing load pockets.

California and New York start with large distribution shares. Texas and Florida gain when EVs and other new loads are pushed away from the peak.

Try California Try Florida