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Dynamic Pricing of Electricity and its Discontents
Ahmad Faruqui and Jenny Palmer

Dynamic pricing incentivizes electricity customers to lower their usage during peak times, especially during the top 100 “critical” hours of the year which may account for between eight and eighteen percent of annual peak demand. Lowering peak demand in those hours means avoiding capacity and energy costs associated with the installation and running of combustion turbines in the long run and lowering wholesale market prices in the short run.

This information was submitted by Jeremy Laundergan, Director, Utility Services Consulting, EnerNex, jlaundergan@enernex.com on 10/10/2011.

Document Type:
White paper
The Brattle Group, Inc.