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Encore for Negawatts?

Congress renews PURPA’s call for conservation and load management, but the world has changed since the 1970s.

Fortnightly Magazine - February 2006

through bilateral trading contracts. (For the full explanation, see Comments of ISO New England, pp. 10-14.)

ISO-NE admits that its model is still a work-in-progress, but says it can use this method even to calculate the benefits of extending full nodal LMP pricing (“dynamic pricing”) to individual loads.

In fact, it estimates that over a five-year period, dynamic pricing for loads of 1 MW or greater (what is now enjoyed only by power producers on the supply side) could bring benefits of $340, at a cost of only $6.7 million a year, “at most.”