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Fortnightly Magazine - July 1 2003

Predicting California Deman Response

How do customers react to hourly prices?
Chris S. King and Sanjoy Chatterjee

How do customers react to hourly prices?

As California embarks on a Statewide Pricing Pilot (SPP) for residential and small commercial (200 kW) customers, policymakers and participants in the proceedings are asking several questions:

California Experiment: Dynamic Pricing for the Mass Market

Will the state launch a full-scale rollout of dynamic tariffs?
Ahmad Faruqui and Stephen S. George

Will the state launch a full-scale rollout of dynamic tariffs?

A pilot program in California is putting dynamic pricing and advanced metering to the test.

The California Public Utilities Commission (CPUC) approved a Statewide Pricing Pilot (SPP) in March,1 at a cost of approximately $10 million, including metering, project planning, management, evaluation, and concurrent market research on non-pilot participants focused on customer preferences for rate options.2

The SPP has the following objectives:

Frontlines

The United States must turn overseas for natural gas supplies, in spite of worries about energy independence.
Richard Stavros

Will the Hydrogen Economy Take Off?

Hydrogen is hot, but whether it really will fly is another story.
Jennifer Alvey

People

New Hires:
We welcome submissions to People, especially those accompanied by a Color Photograph. Send to:

New Hires:

Progress Energy shareholders re-elected Edwin B. Borden, James E. Bostic Jr., David L. Burner, Richard L. Daugherty, and Richard A. Nunis as Class II directors of the company. They will serve three-year terms.

Maryland Gov. Robert L. Erlich Jr. named state delegate Kenneth D. Schisler chairman of the Maryland Public Service Commission. Schisler succeeds Catherine I. Riley.

Fueling the Hydrogen Economy: Energy Independence Now

Environmentally benign technologies can meet the president's hydrogen plan.
Henry R. Linden

Letters to the Editor / Corrections, Clarifications

Corrections, Clarifications
Jacob Williams VP Generation Development, Peabody Energy jwilliams@peabodyenergy.com

To the Editor:

I read your May 15, 2003, "Frontlines" column ("Grid Glut?") and have to respectfully take issue with a couple of your thoughts.

Predicting California Deman Response

How do customers react to hourly prices?
Chris S. King and Sanjoy Chatterjee

How do customers react to hourly prices?

As California embarks on a Statewide Pricing Pilot (SPP) for residential and small commercial (200 kW) customers, policymakers and participants in the proceedings are asking several questions:

Commission Watch

Is the "pathway concept" the answer to Virginia's qualms?
Lori A. Burkhart

Is the "pathway concept" the answer to Virginia's qualms?

PJM, at its annual meeting, announced a plan to integrate ComEd into PJM by Oct. 1, pursuant to FERC's April 1 order, despite Virginia's saying no to membership by American Electric Power (AEP) or any other jurisdictional utility, according to PJM spokesman Ray Dotter. PJM introduced the "pathway concept" as a way to work around that state while the jurisdictional issues are being fought at FERC. (May 16 was the deadline for filings at FERC on whether the integration can proceed.)

California Experiment: Dynamic Pricing for the Mass Market

Will the state launch a full-scale rollout of dynamic tariffs?
Ahmad Faruqui and Stephen S. George

Will the state launch a full-scale rollout of dynamic tariffs?

A pilot program in California is putting dynamic pricing and advanced metering to the test.

The California Public Utilities Commission (CPUC) approved a Statewide Pricing Pilot (SPP) in March,1 at a cost of approximately $10 million, including metering, project planning, management, evaluation, and concurrent market research on non-pilot participants focused on customer preferences for rate options.2

The SPP has the following objectives:

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