Fielding a real-time pricing program. Final report
Real-time pricing (RTP) is a product that utilities are increasingly turning to for flexibility to respond to demands by customers for more control over the cost of electricity. This report describes the process Pennsylvania Power & Light (PP&L) followed to establish its RTP pilot program. The pilot program was designed under a tailored collaboration with the Retail Market Management (RMM) program of the Electric Power Research Institute`s (EPRI) Utility Resource Planning and Management (URPM) business unit. The objective of this report is to provide to other member utilities insights from PP&L about the keys to developing a successful RTP program. The first chapter introduces the concept of RTP and provides a brief history of real-time pricing at other utilities. The second chapter details the steps to successfully implement an RTP program. It indicates the timing and typical utility departments involved in the process. The third chapter describes what marginal costs are conceptually and how to calculate them. The chapter continues with a description of PP&L`s approach to developing its marginal costing procedures and how PP&L addressed the issues it faced. The final chapter provides a detailed description of the service design process and explains how a two-part service design collects revenue to cover fixed costs. It describes the service design issues that PP&L faced and the choices that PP&L made. The chapter finishes with a description of EPRI`s C-VALU customer demand simulation software and how C-VALU was used to determine the impact of RTP on PP&L and its customers.
- Research Organization:
- Electric Power Research Inst., Palo Alto, CA (United States); Christensen (Laurits R.) Associates, Inc., Madison, WI (United States)
- Sponsoring Organization:
- Electric Power Research Inst., Palo Alto, CA (United States)
- OSTI ID:
- 108128
- Report Number(s):
- EPRI-TR--105042
- Country of Publication:
- United States
- Language:
- English
Similar Records
Automatic control of electric thermal storage (heat) under real-time pricing. Final report
Increasing the yield of real-time pricing: Kansas City Power and Light`s real-time pricing innovations. Final report