PEC never paid greater than market rates, they simply gave a net credit since solar was only reducing load at the service drop for a neighborhood. The cost to them was swapping the meter for a bidirectional one. Now at some point if enough people started using solar, they have the option of either curtailment (which would be automatically reflected in the existing meters), which at that point would justify an increase in fees, but their study was specific that they lowered solar compensation due to being able to sell less power to solar users (not for infrastructure reasons), which makes no sense why they are singling out solar since they offer incentives for other efficiency measures such as more efficient AC units to lower power consumption.

Regressive in that solar programs are not inflated, but do require distribution upgrades to realize their efficiency advantages over centralized power transmission. These distribution upgrades are costly to IOUs because they cut into their margins when the efficiency of distributed generation is considered.

Paying distributed generation export at retail rates or higher (DR, etc) makes plenty of sense because there are significant load, resiliency, and efficiency advantages to homeowners who are supposed to be the ones to benefit most from the grid.

The only change needed for solar users is a different meter swapped at the house that supports bidirectional metering. Solar power at the residential level only lowers overall demand in the neighborhood and on the grid, and in the very rare case where the net solar production exceeds the entire neighborhood's demand, PEC could choose to simply not use that excess (curtailment) and the meter at each person's house would accurately reflect that with no upgrades needed (Texan power utilities are not required to buy back excess solar). So the added cost to PEC is entirely optional. At its worst PEC was only crediting almost half of the power they were reselling from solar users (from originally a simple net credit), although they've thankfully been starting to backpeddle on that.

Honestly, I would prefer they simply charged the cost of swapping meters and adjusted the flat infrastructure fee for solar users (when necessary) for cases where upgrades are needed in neighborhoods with excess solar generation. Instead, PEC is able to resell solar power for a very significant profit with their current rates.