As policy makers at both the federal and state levels look at what options they have to address today’s energy challenges, they continue to focus on demand response as one of the key options at their disposal. As such, they have begun to look at the most common enabling technology for demand response – advanced metering - and are seeking to understand, from a technology standpoint, exactly what these “smart” meters are and how much they cost. This paper is intended to provide information to address those questions. While advanced metering provides a number of benefits and capabilities outside of the area of demand response, this review focuses on the type of demand response known as dynamic pricing. Dynamic pricing refers to when customers are provided with time differentiated rate and price signals that incent them to modify their electricity usage in ways that benefit them as well as the electricity provider and other parties. The most common types of dynamic pricing are time-of-use (TOU), real-time, and critical peak.