Brattle Principal Ahmad Faruqui has authored a Utility Dive op-ed on “6 Reasons why California needs to deploy dynamic pricing by 2030.” The article argues that, while California is committed to having a power sector that relies exclusively on renewable energy resources by 2045, the state should aim to roll out dynamic pricing even earlier.

Relying on renewable energy resources can be challenging for maintaining system reliability. However, grids can maintain reliability if the load responds dynamically to changing system conditions. Several of the largest utilities in California are expected to transition all of their customers to opt-out time-of-use (TOU) rates by 2025, which will help lay the foundation for rolling out technology-enabled dynamic pricing in the state.

Most Californians have already encountered dynamic pricing in other aspects of life – such as tolls, ride-sharing services, and ticketed events – where price increases at peak times and decreases at off-peak times. They will have several years to prepare for the rollout of dynamic pricing in 2030 if the TOU rollout is complete by 2025.

View Article