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May 18, 2012
Brattle Principal Ahmad Faruqui Authors Article on Smart Rates and their Correlation to Reduced Peak Demand

A recent article authored by Brattle principal Ahmad Faruqui and published in the Smart Grid Observer investigates the low percentage of U.S. electricity customers with smart rates and the correlation to a reduction in peak demand.

In the article, “One Third of U.S. Households Have Smart Meters - Yet Not Smart Rates,” Dr. Faruqui explains that although one-third of U.S. residential customers have smart meters, just one percent of these customers have smart rates. Of this one percent, 99 percent are on a time-of-use rate and Dr. Faruqui finds that, when offered a time-based price signal, customers responded by lowering peak demands. Dr. Faruqui also notes that the use of dynamic pricing will likely increase in the near future, as more states plan to offer dynamic pricing to customers.

To read the complete article, please visit the Smart Grid Observer website.