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...

The European Union hopes to reduce energy consumption by 20 percent by the year 2020. While the United States as a whole does not have any such targets, some states such as Connecticut, Maryland, and Pennsylvania have established specific numerical targets while other states such as California...

We demonstrate that annual peak demand days are characterized by both extreme values of predictors (such as weather) and large unpredictable "shocks" to demand. OLS approaches incorporate the former feature, but not the latter, leading OLS to produce downwardly-biased estimates of the annual...

With the advent of the smart grid, dynamic pricing is receiving increasing interest by state commissions throughout North America as a means of enhancing economic efficiency by reducing the need for expensive peaking capacity. But several barriers stand in the way of its rapid deployment.As...

This paper reviews different methods for ensuring economic efficiency when devising tariffs for distribution network services while meeting the revenue constraint. There is a long tradition in welfare economics which suggests that prices should be based on long run marginal costs to achieve...

Electricity markets are being deregulated or face new regulatory frameworks. In such changing markets, new pricing strategies will need to consider such factors as cost, value of service and pricing by objective. Pricing in Competitive Electricity Markets introduces a new family of pricing...