The ethics of dynamic pricing

Electricity Journal

Volumn 23, Issue 6, 2010, Pages 13-27

  Faruqui, Ahmad ^a  

^a THE BRATTLE GROUP   (United States)

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EID: 77955841202     PISSN: 10406190     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.tej.2010.05.013     Document Type: Article

References (21)

1. http://documents.dps.state.ny.us/public/Common/ViewDoc.aspx?DocRefId={4FA9C260-CE37-4FA983CA1D79044093A5}
2. Of course, benefits over multiple years would be much higher. In a full cost-benefit analysis, all relevant costs would also need to be factored in.
3. See, for example, Ahmad Faruqui, Ryan Hledik and John Tsoukalis, The Power of Dynamic Pricing, Elec. J., April 2009
4. Its applicability to residential customers is prevented by state legislation that has frozen portions of residential rates in order to recover the costs of the energy crisis of 2000-01 from the unfrozen portions
5. FERC Staff, A National Assessment of Demand Response Potential , Washington, DC, June, 2009
6. Ahmad Faruqui, Ryan Hledik, Sam Newell and Johannes Pfeifenberger, The Power of Five Percent Elec. J. Oct., 2007.
7. Revenue neutrality means that the revenue collected from the class to which the new rate is being applied would not change from the revenue collected under the old rates. In the case of dynamic pricing, this means that the customer who has a load factor equal to the class average would see no change in her or his bill. Load factor is the ratio of a customer's average demand to her or his peak demand
8. Several of the test results are discussed in my paper with Ryan Hledik and Sanem Sergici, Rethinking Pricing: The Changing Architecture of Demand Response, Pub. Util. Fortnightly, Jan., 2010.
9. http://news.smh.com.au/breaking-news-national/vic-govt-to-review-smart-meters-20100203-nd88.html
10. William Vickrey, Responsive Pricing of Public Utility Services, Bell J.Econ. & Mgmt. Sci., 2, 1971,at 337-346.
11. Fred C. Schweppe, Michael C. Caramanis, Richard D. Tabors and Roger E. Bohn, Spot Pricing of E lectricity (Boston: Kluwer Academic Publishers, 1987).
12. Eric Hirst, Price-Responsive Demand in Wholesale Markets: Why Is So Little Happening? Elec. J., May 2001.
13. D.J. Bolton, Costs and Tariffs in Electricity Supply (London: Chapman & Hall, 1938).
14. http://www.mtc.ca.gov/news/info/toll_increase.htm
15. Robert G. Cross, Revenue Management , Publisher, 1998
16. John Upton, "Giants Make a Dynamic Move: Team to Implement Pricing Strategy for Nonseason Tickets", Examiner , Feb. 9, 2010.
17. http://sabres.nhl.com/club/page.htm?id=39501
18. See the sidebar at the end of the article for a discussion of the hedging premium
19. Frank A. Wolak, An Experimental Comparison of Critical Peak and Hourly Pricing: The PowerCentsDC Program, Prepared for 15 th Annual Power Conference, Haas School of Business, U.C. Berkeley, Mar. 13, 2010.
20. Additional details are available in Ahmad Faruqui and Ryan Hledik, Transition to Dynamic Pricing, Pub. Util. Fortnightly, Mar., 2009.
21. Hung-po ChaoPrice-Responsive Demand Management for a Smart Grid WorldElec. J. Jan./Feb. 2010