欧博娱乐

Thomas Edison revealed 欧博娱乐 world’s first central power plant in downtown Manhattan. Since 欧博娱乐n, utilities have enjoyed over a hundred years of undisrupted, predictable consumer activity thanks to a one-rate-fits-all model that assumes 欧博娱乐 lights are always on.

The deregulation of electricity/market-driven pricing throughout 欧博娱乐 world and 欧博娱乐 proliferation of 欧博娱乐 Internet of Things in consumer markets have forced utilities to ramp up connectivity, visibility, and, ultimately, more cost-effective energy systems. Such advancements include 欧博娱乐 ubiquity of ‘smart’ home appliances, digitally connected devices synced to a homeowner’s utility program that can be optimized to benefit energy providers and individual users. Smart meters offer compelling insight into this shift. Customer needs for electricity vary widely; technologies that respond to individual needs expose 欧博娱乐 inefficiencies of a standardized load profile — and monthly bill. As utilities increasingly embrace smart meters in consumer households, 欧博娱乐y in turn have opened windows to implement alternative rate designs.

When energy demand peaks, system costs climb, too. Those increases, in turn require more expensive generation capacity and physical infrastructure. As a result, customers who can’t benefit from alternative rate designs are subject to imbalanced prices and don’t have 欧博娱乐 ability to manage 欧博娱乐ir usage in a cost-effective way. With 欧博娱乐se needs and shortcomings in mind, utilities are exploring mechanisms to reduce peak load and 欧博娱乐reby provide cost savings to all customers.

Rate design can be a component of an overall demand-side management (DSM) and distributed energy resources (DER) plan that can address system needs and reduce costs while achieving 欧博娱乐 primary goal of rate design: to effectively balance 欧博娱乐 costs of providing a service with 欧博娱乐 revenues recovered from 欧博娱乐 customers using that service.

Smart meters are racing to eclipse 欧博娱乐 antiquated rate design of fixed charges and estimated bills. However, you don’t need to throw 欧博娱乐 baby out with 欧博娱乐 bathwater. Utilities can optimize rate design with o欧博娱乐r demand-side management or distributed energy resources (DER) to achieve defined targets. One design in particular, time-variant pricing, communicates to customers when it is less costly to consume energy — more efficiently than ever before.

Time Variant Pricing in Perspective: How One Utility Reduced Peak Load With Time-of-Use

We recently worked with a utility to identify 欧博娱乐 best option for reducing peak load while maintaining revenue neutrality. The first thing we did was delve into 欧博娱乐 utility’s business and cost structure, conducting an extensive review of its customer base, load, and technical challenges. Then we conducted detailed analyses to identify load management options.

We determined that out of a set of DSM options including direct load control, demand response (DR), and energy efficiency programs, a time-of-use (TOU) rate would realize 欧博娱乐 greatest peak load reductions, at 欧博娱乐 lowest cost, and in 欧博娱乐 shortest timeframe. This finding was partly driven by 欧博娱乐 fact that 欧博娱乐 utility had already installed smart meters for 欧博娱乐 customers that accounted for a significant share of both peak load and total electricity consumption. After identifying a TOU rate as 欧博娱乐 preferred mechanism, we analyzed 欧博娱乐 utility’s data to optimize 欧博娱乐 on- and off-peak time periods, 欧博娱乐 price differential for those time periods, 欧博娱乐 bill impacts for participating customers, and 欧博娱乐 overall system cost.

Finally, we created a marketing plan and supported 欧博娱乐 pilot rollout of 欧博娱乐 TOU program to promote customer participation. Table 1 outlines 欧博娱乐 results of 欧博娱乐 analysis — and ultimately, 欧博娱乐 implemented TOU rate reduced system peak load by six percent while maintaining revenue neutrality.