Boston Edison has proposed a unique pilot program that would allow 10 large customers to test hour-by-hour pricing. Although the one-year pilot is not a rate discount program, it would offer participants 10 percent off their demand charge (em in effect, a 4-percent discount. The pilot simulates a market price using a computer model that relays an hourly breakdown of costs to the customers. If the customers are able to respond and move their load around, they may save; if not, their electric bill may remain the same, or perhaps rise.
The pilot is part of Boston Edison's revised
"E-Plan," the electric restructuring proposal it filed with the Massachusetts Department of Public Utilities in February. The E-Plan would involve two phases: 1) efficient direct access, with simulated market prices for all customers starting in 1997; and 2) complete direct access with customer choice in 1998. t
Lori A. Burkhart is an associate legal editor of PUBLIC UTILITIES FORTNIGHTLY.