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Distributed resources offer many economic and reliability benefits to customers, utilities, and society as a whole. But in some very important ways, our state regulatory practices inadvertently have made it difficult for these resources to be deployed. Understanding the existing regulatory barriers may lead to their removal. States such as Texas, New York, California, and others have already undertaken new regulatory approaches that simplify the technical integration of distributed resources into their local distribution networks. We encourage regulators and interested parties to become familiar with the work now under way in these states and to take steps to ease the integration of small-scale resources into local distribution systems.

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