Fortnightly Magazine - July 1 2003

Predicting California Deman Response

How do customers react to hourly prices?


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?


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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