Realizing Real-Time Pricing's Promise: What CHP Offers MHP
Topics:
Markets,
States:
Federal,
Resource Type:
Report
Adoption Year:
2010
Abstract:
Real-time pricing (RTP) programs provide economic incentives for customers to reduce energy consumption during peak hours. Several states have created RTP rate structures – voluntary and mandatory – on various categories of customers, usually industrial, larger commercial and institutional customers. In 2006, New York State imposed mandatory hourly pricing (MHP) for all distribution utilities on a select group of customers initially ranging in size from 1,000 kW maximum peak demand to 1,500 kW maximum peak demand, depending upon the utility. The maximum peak demand level triggering mandatory hourly pricing was scheduled to drop over time, so that by Spring 2011 all customers with maximum peak demand levels in the range of 300 kW to 500...
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