Real-Time Pricing as an Optional Service: It's Alive, But Is It Well?

A small number of programs have demonstrated that RTP, offered as an optional tariff, is capable of attracting a substantial number of participants and that at least some of these customers are able and willing to respond when hourly prices rise. However, for the vast majority of programs, modest participation rates have limited the significance of their demand response impacts. Policymakers must therefore be realistic about the likely reception of RTP among customers that have become accustomed to fixed retail rates.