# RMI Electricity Affordability Toolkit > A curated set of actionable, state-level policies to help legislators, staff, and advocates identify and advance effective electricity affordability solutions. Each policy includes real-world examples, legislative design considerations, and downloadable PDF summaries. ## Pages - [Home](https://affordability-toolkit.rmi.org): Overview of the toolkit, its purpose, and how to use it - [User Guide](https://affordability-toolkit.rmi.org/user-guide): Detailed guide on cost drivers, policy themes, filtering options, and the roles of key actors - [Policies](https://affordability-toolkit.rmi.org/policies): Browse and filter all policies by theme, cost driver, time horizon, and more ## Policies - [Percentage Of Income Payment Plans](https://affordability-toolkit.rmi.org/policies/percentage-of-income-payment-plans): Percentage of income payment plans reduce energy burden by capping bills as a fixed percentage of household income. [Safeguard] - Themes: cost distribution, customer agency | Time horizon: short | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/percentage-of-income-payment-plans.pdf - [Securitization](https://affordability-toolkit.rmi.org/policies/securitization): Securitization is a financing mechanism that allows utilities to replace high-cost debt with low-interest bonds, lowering customer bills while freeing up capital to make investments that modernize the electricity system. - Themes: cost control | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/securitization.pdf - [Fuel-Cost Sharing](https://affordability-toolkit.rmi.org/policies/fuel-cost-sharing): Fuel-cost sharing is a policy that provides a financial incentive for a utility to carefully manage its fuel costs by exposing the utility to a portion of fuel-cost volatility risk, allowing a utility to earn more if it reduces fuel costs and bear a share of the burden if those costs rise. - Themes: cost control, cost distribution | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/fuel-cost-sharing.pdf - [Virtual Power Plants](https://affordability-toolkit.rmi.org/policies/virtual-power-plants): Virtual power plants (VPPs) are aggregations of distributed energy resources (DERs) like electric vehicles, solar and/or battery storage, heat pumps, smart thermostats, and more. VPPs promote affordability by cost-effectively providing a variety of grid services and compensating participating customers. - Themes: cost control, customer agency | Time horizon: short | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/virtual-power-plants.pdf - [Bill Rebates](https://affordability-toolkit.rmi.org/policies/bill-rebates): Electric bill rebates can be issued on a one-time or recurring basis to provide immediate, targeted relief to customers. - Themes: cost distribution | Time horizon: short | Cost savings: low - PDF: https://affordability-toolkit.rmi.org/pdfs/bill-rebates.pdf - [Cost-Effective Wildfire Management](https://affordability-toolkit.rmi.org/policies/cost-effective-wildfire-management): Cost-effective wildfire management involves a variety of strategic approaches that reduce the risk and impact of wildfires on the electricity system while aiming to preserve electricity affordability. - Themes: cost control, cost distribution | Time horizon: variable | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/cost-effective-wildfire-management.pdf - [Disconnection Protections](https://affordability-toolkit.rmi.org/policies/disconnection-protections): Disconnection protections ensure that everyone has access to electricity by preventing shutoffs when customers do not pay their bills. [Safeguard] - Themes: customer agency | Time horizon: short | Cost savings: n/a - PDF: https://affordability-toolkit.rmi.org/pdfs/disconnection-protections.pdf - [Green Municipal Bonds](https://affordability-toolkit.rmi.org/policies/green-municipal-bonds): Green municipal bonds are a financing tool that can be used by states to promote electricity affordability through financing energy upgrades or funding statewide programs for energy efficiency, customer assistance, and more. - Themes: cost control, cost distribution | Time horizon: short | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/green-municipal-bonds.pdf - [Low-Income Energy Efficiency](https://affordability-toolkit.rmi.org/policies/low-income-energy-efficiency): Low-income energy efficiency programs help households reduce energy consumption and utility costs by supporting measures like air sealing, insulation, and equipment upgrades. [Safeguard] - Themes: cost control, customer agency | Time horizon: short | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/low-income-energy-efficiency.pdf - [All-Source Procurement](https://affordability-toolkit.rmi.org/policies/all-source-procurement): All-source procurement is a framework that requires utilities to solicit and evaluate bids from a full range of supply and demand-side resources in a competitive, technology-neutral process to prioritize cost-effectiveness and reliability. - Themes: cost control | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/all-source-procurement.pdf - [Arrearage Management Plans](https://affordability-toolkit.rmi.org/policies/arrearage-management-plans): Arrearage management plans help low-income utility customers systematically reduce and ultimately eliminate utility debt. [Safeguard] - Themes: customer agency | Time horizon: short | Cost savings: n/a - PDF: https://affordability-toolkit.rmi.org/pdfs/arrearage-management-plans.pdf - [Capex-Opex Equalization](https://affordability-toolkit.rmi.org/policies/capex-opex-equalization): Capex-opex equalization strategies aim to balance the financial incentives between capital expenditures (capex) and operating expenditures (opex) to incentivize cost-effective solutions. - Themes: cost control | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/capex-opex-equalization.pdf - [Careful Management Of Cost Trackers](https://affordability-toolkit.rmi.org/policies/careful-management-of-cost-trackers): Careful management of the use of cost trackers can promote affordability by increasing scrutiny on utility costs and strengthening incentives for utilities to control costs. - Themes: cost control | Time horizon: medium | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/careful-management-of-cost-trackers.pdf - [Community Solar Programs](https://affordability-toolkit.rmi.org/policies/community-solar-programs): Community solar programs allow customers to benefit from the cost savings of solar energy without needing to install solar systems on their homes, giving customers more control over their electricity bills. - Themes: customer agency | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/community-solar-programs.pdf - [Low-Income Discount Rates](https://affordability-toolkit.rmi.org/policies/low-income-discount-rates): Low-income discount rates provide electricity at a discounted price, either as a flat discount or a tiered rate that varies by income group. [Safeguard] - Themes: cost distribution, customer agency | Time horizon: short | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/low-income-discount-rates.pdf - [Multi-Year Rate Plans](https://affordability-toolkit.rmi.org/policies/multi-year-rate-plans): Multi-year rate plans, when designed effectively, can provide a powerful incentive for utilities to control costs by extending the time between utility rate cases beyond the typical one to two years. - Themes: cost control | Time horizon: long | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/multi-year-rate-plans.pdf - [Public Advocate](https://affordability-toolkit.rmi.org/policies/public-advocate): Public advocates represent the interests of consumers in utility regulatory proceedings, ensuring customer voices are heard in decisions affecting utility rates, service quality, and energy affordability. - Themes: cost control, cost distribution, customer agency | Time horizon: short | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/public-advocate.pdf - [Return on Equity Reform](https://affordability-toolkit.rmi.org/policies/return-on-equity-reform): Return-on-equity (ROE) reform strategies aim to modernize the process for establishing allowed utility ROEs, ensuring ROEs are in line with sound financial principles and that utilities do not receive excess returns on their capital investments. - Themes: cost control | Time horizon: medium | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/return-on-equity-reform.pdf - [Tariffs For Large Load Customers](https://affordability-toolkit.rmi.org/policies/tariffs-for-large-load-customers): Large load tariffs include both state-regulated retail tariffs, which set terms and rates for large electric customers like data centers, and FERC-regulated tariffs, which decide how transmission costs are shared. Together, they influence how grid costs and risks are distributed among ratepayers. - Themes: cost control, cost distribution | Time horizon: medium | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/tariffs-for-large-load-customers.pdf - [Advanced Transmission Technologies](https://affordability-toolkit.rmi.org/policies/advanced-transmission-technologies): Advanced transmission technologies enhance grid performance - at a lower cost than building new high-voltage lines - while using existing rights of way. - Themes: cost control | Time horizon: short | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/advanced-transmission-technologies.pdf - [Better Alignment Between Electric And Gas Planning](https://affordability-toolkit.rmi.org/policies/better-alignment-between-electric-and-gas-planning): Better alignment between electric and gas planning optimizes investments and reduces duplicative infrastructure, lowering costs for utilities and customers. - Themes: cost control | Time horizon: medium | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/better-alignment-between-electric-and-gas-planning.pdf - [Consideration Of Stranding Risk](https://affordability-toolkit.rmi.org/policies/consideration-of-stranding-risk): Modernizing the processes used to consider the asset-stranding risk of utility-proposed generation resources can help guard against unnecessary utility investment recovered by ratepayers. - Themes: cost control | Time horizon: long | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/consideration-of-stranding-risk.pdf - [Improved Planning Processes](https://affordability-toolkit.rmi.org/policies/improved-planning-processes): Improved planning processes can reduce system costs and lower customer bills by avoiding unnecessary infrastructure investments and identifying cost-effective and reliable solutions. - Themes: cost control | Time horizon: medium | Cost savings: medium - PDF: https://affordability-toolkit.rmi.org/pdfs/improved-planning-processes.pdf - [Managed Gas Transition](https://affordability-toolkit.rmi.org/policies/managed-gas-transition): A managed gas transition avoids stranded asset risks and ensures costs are kept fair and stable for customers as more households adopt electric equipment and appliances. - Themes: cost control, cost distribution | Time horizon: long | Cost savings: high - PDF: https://affordability-toolkit.rmi.org/pdfs/managed-gas-transition.pdf - [Revenue Decoupling](https://affordability-toolkit.rmi.org/policies/revenue-decoupling): Revenue decoupling policies remove the link between a utility's revenue and the amount of electricity that it sells to make the utility more agnostic toward energy-saving measures. - Themes: cost control | Time horizon: variable | Cost savings: variable - PDF: https://affordability-toolkit.rmi.org/pdfs/revenue-decoupling.pdf - [Time-Varying Rates](https://affordability-toolkit.rmi.org/policies/time-varying-rates): Time-varying rates provide an incentive for customers to shift their electricity consumption throughout the day from peak to off-peak periods, which can lead to lower electricity bills. - Themes: cost control, customer agency | Time horizon: medium | Cost savings: low - PDF: https://affordability-toolkit.rmi.org/pdfs/time-varying-rates.pdf - [Permitting Reform](https://affordability-toolkit.rmi.org/policies/permitting-reform): Modernizing permitting for large electricity generation projects can lower the cost of supplying electricity by making it faster and easier to build the lowest-cost resources to meet growing demand. - Themes: cost control | Time horizon: long | Cost savings: low - PDF: https://affordability-toolkit.rmi.org/pdfs/permitting-reform.pdf ## Optional - [llms-full.txt](https://affordability-toolkit.rmi.org/llms-full.txt): Full policy content including context, background, real-world examples, legislative design, and case studies