Integrating Time-Differentiated Rates, Demand Response, and Smart Grid to Manage Power System Costs

A consensus has been forming around an integrated approach combining peak capacity expansion with ways to manage peak demand that enhance a customer's ability to better control their electric consumption. Dynamic pricing is seen as an important piece of the overall approach to peak demand management, and one element to help bridge this imbalance between peak demand and peak supply, and also help manage overall power supply costs.