Why is Electricity Pricing So Difficult? Between a Rock and a Smart Meter

Two energy experts on how some utilities are succeeding with TOU rates, demand rates, and even dynamic pricing; where the barriers are; and how to design pricing options that customers understand and want. (May 2020)

FAQ

Date: May 2020

For decades, there has been the promise of time-differentiated and dynamic pricing for electricity consumers, yet we are still far from reaching that elusive goal. This disconnect between price signals and marginal costs has complicated efforts to modulate system peaks and fill the duck curve’s belly. At the same time, customers do not want more complex rates. They are comfortable with their traditional flat rate despite the fact they don’t know what a kilowatt hour is!

But now, with smart meters and technologies to help customers manage energy use like never before, how can we greatly boost pricing success in the decade to come? Hear two energy experts discuss how some utilities are succeeding with TOU, demand rates, and even dynamic pricing, where the barriers are today, and how to design pricing options that customers actually understand and want.

Speakers:
Ahmad Faruqui, The Brattle Group
Bill LeBlanc, E Source
Derek Kirchner, Consumers Energy and PLMA Executive Committee