Why few U.S. consumers use time-of-use energy prices

Time-of-use (TOU) prices have been around for decades, but so far U.S. customer adoption has been slow. However, U.S. policymakers are now eager to promote TOU pricing for electricity since this strategy has been proven to promote energy efficiency. Also, customers like TOU prices — when they are voluntary.

What’s a regulator to do?

Having worked on this issue for 30 years, I see four main barriers to implementing TOU prices that customers like.

Full post: Why few U.S. consumers use time-of-use energy prices, and how utilities can correct that

Time-of-use prices: Arizona consumers vote with their wallets

Lower-cost off-peak energy prices can save money — but do consumers care enough to alter their energy consumption habits in response to price signals? Apparently so, according to a new case study from the Association for Demand Response and Smart Grid.

This case study focused on time-of-use prices offered by Salt River Project in Arizona. Over a quarter of residential customers (nearly 300,000 households) chose to participate in SRP’s TOU programs. SRP also offers prepaid service, with over 100,000 participants.

Here are the big lessons SRP learned from over three decades of experience with offering residential TOU and prepayment service…

Full post: Arizona consumers vote with their wallets on time-of-use prices

Renewable energy: disruptive technology

I’m sitting in a café on the Champs d’Elysees amid the electric atmosphere of streetlights, neon signs, cars, trucks, shoppers, gawkers, storekeepers, and restaurateurs — an abundance of energy.

Energy has driven the development of modern civilization and conveniences. And renewable energy supplies are growing fast. But like any disruptive technology, the growing flocks of wind turbines and expanding acres of solar-equipped rooftops around the world are causing temporary growing pains for the energy industry.

Fortunately, these “problems” are really opportunities. And utilities like TXU Energy in Texas are pioneering solutions…

Full post: How renewable energy is a disruptive technology