The survey was designed to better understand consumer preferences with regard to electricity prices that vary throughout the day. The full report presents the survey findings, including charts and tables, analysis and recommendations.

After decades of experimentation, many electric utility experts have not learned how to design dynamic prices that appeal to consumers. Electricity prices that are higher precisely when consumers need more electricity seem punitive. People are highly sophisticated in their purchase decisions in other industries—such as airline tickets or seats at sporting events—so why not accept dynamic pricing in the electric industry? Regulated electric service has offered consumers a century of experience with prices that are stable. While consumers can make personal assessments regarding the tradeoffs between the effort required and the anticipated savings, more education about pricing is necessary to allow consumers to understand their baseline and the rationale for savings claims.

Filed Under: Smart Grid