This document is a summary of real-time pricing tariff programs that are the default service for large customers in about seven states with retail competition. Dynamic retail pricing, especially real-time pricing (RTP), has been widely heralded as a panacea for providing much-needed demand response in electricity markets. However, in designing default service for competitive retail markets, demand response has been an afterthought, and in some cases not given any weight at all. But that may be changing, as states that initiated customer choice in the past 5-7 years reach an important juncture in retail market design.
The Role of Demand Response in Default Service Pricing
February 1, 2006
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