Meeting #28: Dynamic Pricing

Tuesday, May 7, 2013
10:00am – 3:15pm ET
PECO, Philadelphia, PA


As competitive suppliers offer generation services to customers, how do we transition from traditional rate designs to dynamic pricing provided not only by the incumbent utility as part of a Standard Service Offer rate, but also by competitive retail suppliers? How do we allow the competitive market to offer differentiated products? Should the risk assumed by customers who engage in dynamic pricing be reflected in pricing? What are the barriers to suppliers offering dynamic pricing options? What is the level of customer interest across customer classes? Is it a question of rates not being designed to provide enough potential savings to interest customers or is there a problem with outreach to customers regarding dynamic pricing options? This meeting explored current issues surrounding the implementation of dynamic pricing programs.


Final agenda - pdf

State Updates on Dynamic Pricing and Advanced Metering
Dan Cleverdon, DC Public Service Commission
Eric Matheson, PA Public Service Commission
Calvin Timmerman, MD Public Service Commission
Krystina Schaefer, OH Public Service Commission

Brief state updates regarding recent activity related, directly or indirectly, to dynamic pricing and advanced metering.

Landscape for Dynamic Pricing in PJM
Richard Hudson, ConEdison Solutions
Doug Krall, PPL
Peter Langbein, PJM

This panel surveys the current landscape and discuss what the opportunities are to use Dynamic Pricing in the PJM market. How do settlements currently work in the PJM market and how would they need to change to better accommodate dynamic pricing? What does peak load contribution (PLC) mean? What opportunities exist for PLC reduction? What opportunities exist for dynamic pricing programs to participate in PJM's Demand Response programs? What changes need to be made to the way information is shared to implement dynamic pricing programs? What kinds of products can the market support? What products can PJM deliver?

Opportunities for Competitive Service Providers to Offer Mass Market Dynamic Pricing
Ariel Tesher, Illinois Commerce Commission
Jim Reiley, PECO
Amy Oehler, Direct Energy

This panel focuses on the relationship between the utility and the marketer in terms of delivering dynamic pricing to customers either through a competitive auction to deliver a Standard Service Offer or through retail service offerings. What products do customers want? How can an SSO portfolio be established that includes dynamic pricing options. Can a retail supplier offer dynamic pricing? What are the barriers to suppliers offering additional mass market dynamic pricing programs? Can the current utility billing systems support a dynamic price offered by a retail marketer?