This article presents an economic model that studies customer-owned and operated distributed generation facilities.  Results show that customer-optimized distributed generation facilities create quantifiable losses for distribution and generation and transmission utilities, and that further work will be required in order to create new business models that equitably share in the potential technical and economic benefits of distributed generation.  This article was written in part by our very own Ray C. Duthu, a Senior Energy Analyst/Consultant at Ascend Analytics.

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