The rollout of smart meters has enabled the provision of dynamic pricing to residential customers. However, doubts remain whether households can respond to time-varying price signals and that is preventing the full scale rollout of dynamic pricing and the attainment of economic efficiency....

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...

While many dynamic pricing experiments have been carried out in warm climates, few have been carried out in moderate climates. We analyze data from a pilot in New England which featured a time-of-use rate, two dynamic pricing rates and four enabling technologies. Unlike most other pilots, it...

We estimate the cost of installing smart meters in the EU to be €51 billion, and that operational savings will be worth between €26 to 41 billion, leaving a gap of €10 to 25 billion between benefits and costs. Smart meters can fill this gap because they enable the provision of dynamic...

Demand response - changing prices to reduce consumption at peak demand - creates value when it encourages electricity consumers to reduce load at peak times by either curtailing energy-using activities or shifting them to off-peak times. Load that is reduced during times when the power system...

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...

This paper presents the first year results of a three-year study that was designed to measure the impact of time-of-use rates in the Canadian province of Ontario. Unlike prior studies which have analyzed such impacts in an experimental setting featuring the randomized allocation of customers to...

As the Smart Grid takes shape, it opens new vistas for change. One of those salient opportunities for change that is enabled by the Smart Grid is the pricing of electricity. By and large, existing rate designs hide the temporal variation in the cost of electricity and thereby promote...

Since the energy crisis of 2000-2001 in the western United States, much attention has been given to boosting demand response in electricity markets. One of the best ways to let that happen is to pass through wholesale energy costs to retail customers. This can be accomplished by letting retail...

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...