Most customers are charged a flat rate per kWh of energy consumed and that rate is simply multiplied by the number of kWh used to determine usage costs on the final bill. This pricing method has insulated customers from actual fluctuations in wholesale market prices, which tend to increase sharply during peak hours or during system contingencies. Dynamic pricing brings the retail and wholesale markets into closer proximity, exposing customers to the price volatility that occurs during peak hours and charging them higher rates when energy is consumed during those times. This report seeks to provide readers with an understanding of the impact dynamic pricing can have on electricity usage.

The Impact of Dynamic Pricing on Electricity Usage provides industry participants with an understanding of how dynamic pricing can provide benefits to utilities, customers, and society at large. Topics covered in the report include:

• Explanation of what dynamic pricing is
• Discussion of the benefits which dynamic pricing can provide to stakeholders
• Analysis of the main types of dynamic pricing
• Identification of the kinds of utility programs enabled by dynamic pricing
• Overview of the technologies needed to implement dynamic pricing
• Evaluation of the challenges which may hinder implementation of dynamic pricing
• Analysis of the key regulatory decisions which must be made to support dynamic pricing
• Evaluation of the results of key dynamic pricing pilots

The Impact of Dynamic Pricing on Electricity Usage comes in Adobe Acrobat PDF format and is available via electronic download, CD-ROM, or Hardcopy for $299.