I read an interesting article on the eMeter site about how California utilities instituted a series demand response programs to reduce the load on the grid one day this week. This was in response to extreme heat across the state which of course meant more demand as everyone fires up the AC. The programs seemed to have the desired effect in reducing demand..a good thing.
One of the programs they have in place is dynamic pricing for large customers. The cost of electricity goes up as demand goes up. This does entice those customers to look for ways to cut back, reducing demand as a result. It proved to be effective. I'm sure the utilities are looking at ways to expand this program. I'm not necessarily against that but the problem I see is that the next place to go is to the residential consumers. Once smart meters are in place at a residence there's nothing stopping them from implementing dynamic pricing.
This model can be a good thing and will help them from having to build more power plants. However in order to be fair to consumers they must give them more information, in real time. I would be upset if I found my bill say doubled in a particular month because I ran my AC during high cost times without even knowing it. Since I wasn't aware there was an issue I didn't turn down my AC..which achieved no reduction in peak demand.
So by providing much more useful feedback to the consumer...things like text messages, emails or power portals to alert a consumer of an event... the utilities can both cut power use during peaks and have happy customers...what a concept.
Check out the article here:
http://bit.ly/cE6MM8
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