Knowledge Problem

Archive for November 14th, 2002

BABY STEPS TOWARD MARKET-BASED RETAIL PRICING

November 14, 2002

Demand response programs at utilities and ISOs are not full-on market-based retail pricing, but they at least serve as evidence that demand incentives interacting with supply incentives can discipline prices very effectively. This article on PJM’s demand response program illustrates how sharing the benefits of load shaping kept peak hour wholesale prices down in summer 2002 relative to summer 2001.

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