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eMeter Strategic Consulting Eyes DOE Smart Grid Grants
Jul 02, 2009 (Close-Up Media via COMTEX) --
According to eMeter Strategic Consulting, a provider of utility dynamic pricing programs, the Department of Energy's Smart Grid grant funding application rules announced yesterday strongly promote smart--dynamic--energy prices as a component of Smart Grid projects funded under the American Reinvestment and Recovery Act.
Dynamic energy pricing is a key component in increasing residential energy conservation and consumer satisfaction.
"The clear evidence from decades of successful pilot programs is that residential power consumers love the ability to choose electricity price options that empower them with more control over their bills," said Chris King, President of eMeter Strategic Consulting, an arm of eMeter, a provider of Smart Grid management software. "We have partnered with utilities to implement several dynamic pricing pilot programs, and have found not only do consumers like smart prices, but also they consistently respond to savings opportunities, reducing peak load by 10 to 20-percent."
eMeter stated that pilot programs have shown peak demand can be further reduced to as much as 50-percent with the addition of automated response technologies, such as smart thermostats that automatically adjust when power prices are high. These programs have also shown customer satisfaction rates consistently in the 80 to 90-percent range with the same number recommending the prices to their family and friends.
There are different types of dynamic pricing, each reflecting the varying cost of wholesale power at different times of the day. Time-of-use rates have peak and off-peak rates every day, much like cellular phone plans. Peak time rebate programs pay consumers for not using as much electricity during summer afternoons for 10 peak days per year. Critical peak and hourly prices are lower 99 percent of the time but are up to 10 times more expensive for approximately 100 hours per year; consumers who reduce power usage at those times save money.
The DOE's rules for Smart Grid investment grants require that applicants consider dynamic pricing programs as part of their projects, including them as one of the decision criteria. Specifically, the rules state that one of the key "Customer-Level Metrics" in measuring smart grid program progress is the percentage of electricity customers "served by dynamic pricing programs" and that smart meter programs are to include dynamic pricing.
"The beauty of dynamic pricing is that it has always been voluntary, and policymakers agree on this point," said King. "It really comes down to one thing, consumers like choice, and only the consumers who want to participate need do so to achieve the benefits of reduced peak demand for all consumers."
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