Brattle Group

Inclining Toward Efficiency

Is electricity price-elastic enough for rate designs to matter?

Contrary to conventional wisdom, electricity demand isn’t immune to price elasticity, and rate designs can encourage conservation. In particular, inclining block rates coupled with dynamic pricing can cut electric use by as much as 20 percent.

Optimizing Demand Response

A comprehensive DR business case quantifies a full range of concurrent benefits.

The benefits of DR remain difficult to quantify. Building a comprehensive business case requires a shift in how policy makers think about DR in order to understand its real possibilities.

Selling the Smart Grid - The Pitch

Two utilities win customer support for dynamic pricing and demand response.

If the recent backlash against California’s proposed new building codes proves anything, it’s that ratepayers won’t buy into the smart-metering concept by themselves. The industry will have to sell it. How then should electric utilities, municipals and cooperatives go about introducing smart grid technologies? Two major utilities—Public Service Electric & Gas (PSE&G) and Southern California Edison—are in the early stages of doing just that

California: Mandating Demand Response

California’s load-management experience argues for formal DR standards

California hopes to reap $3 billion in benefits from demand response over the next 20 years. Maximizing the potential may require the California Energy Commission to exert its statutory authority. CEC’s chair co-authors.

Sticker Shock!

Increasing prices for materials, equipment and services are driving utility infrastructure costs into uncharted territory.

The evidence is overwhelming: After a decade of relatively stable, or even declining, construction costs, the industry is now facing a prolonged period of elevated construction price tags. What are the causes behind this trend, and how might the cost increases translate into higher rates?

Valuing Demand-Response Benefits In Eastern PJM

When summer heat waves cause electric demand to peak, they also often cause wholesale electricity prices to rise substantially above their average levels. However, since most electricity customers face retail rates that do not reflect this movement in wholesale market prices, they do not modify their consumption patterns, causing a significant drop in economic efficiency. The Energy Policy Act of 2005 calls upon states and utilities to evaluate and implement DR programs to mitigate this problem.

The New Art of Plant Acquisition

Forget the mega merger as a means to acquire new power plants. FERC’s new rules may offer a better path.

Forget the mega merger as a means to acquire new power plants. FERC’s new rules may offer a better path.

Exelon's Epic End Game

Electric M&A: The merger with PSE&G may herald a new industry structure, squarely at odds with regional markets.

The marriage between Exelon and PSEG would create the largest electric utility in the United States. The policy implications could loom even larger, however. Standing at risk is nothing less than FERC’s entire regulatory regime for approval of mergers and market-based rates.

Alaskan Gas Development: One Pipeline, Two Systems

FERC may have to carve out a special set of rules if it wants to bring Arctic gas south to the lower-48.

When President Bush signed the Alaska Natural Gas Pipeline Act of 2004, one might have thought that North Slope gas was on the fast track. With all the special provisions that Congress has added to the bill, the reality may prove otherwise.

LICAP and Its Lessons: A Kink in the Curve

Doubts intensify over New England’s radical new market for electric capacity.

What began nearly two years ago as a simple request by power producers to boost their chances for recovering fixed costs for several power plants in Connecticut has mushroomed into the single most complicated case now pending before FERC.