{"id":2871,"date":"2012-07-05T18:49:54","date_gmt":"2012-07-05T22:49:54","guid":{"rendered":"http:\/\/blogs.edf.org\/energyexchange\/?p=2871"},"modified":"2017-07-14T11:16:57","modified_gmt":"2017-07-14T15:16:57","slug":"a-dynamic-approach-to-california-energy-use","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/energyexchange\/2012\/07\/05\/a-dynamic-approach-to-california-energy-use\/","title":{"rendered":"A Dynamic Approach To California Energy Use"},"content":{"rendered":"<p><a href=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2012\/07\/Jamie-Fine-Photo.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-2874\" title=\"Jamie Fine Photo\" src=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2012\/07\/Jamie-Fine-Photo-225x300.jpg\" alt=\"\" width=\"225\" height=\"300\" srcset=\"https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2012\/07\/Jamie-Fine-Photo-225x300.jpg 225w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2012\/07\/Jamie-Fine-Photo-768x1024.jpg 768w, https:\/\/blogs.edf.org\/energyexchange\/wp-content\/blogs.dir\/38\/files\/2012\/07\/Jamie-Fine-Photo.jpg 1917w\" sizes=\"auto, (max-width: 225px) 100vw, 225px\" \/><\/a><\/p>\n<p><em>This commentary was originally posted <em><em>on the <a href=\"http:\/\/blogs.edf.org\/californiadream\/\">EDF California Dream 2.0 Blog<\/a>. <\/em><\/em><\/em><\/p>\n<p>Californians are poised for a more functional, data-driven model for setting the prices people pay for electricity.\u00a0 The new model will make the massive differences in costs of providing electricity during the course of a typical day more evident to us as energy users, thereby inspiring more efficient use of electricity resources.<\/p>\n<p><a href=\"http:\/\/docs.cpuc.ca.gov\/word_pdf\/AGENDA_DECISION\/168264.pdf\">The California Public Utilities Commission (CPUC) started a rulemaking<\/a> to examine if the current rate structure for residential energy users is fair and equitable across customer classes and if it:<\/p>\n<ul>\n<li>supports statewide-energy goals;<\/li>\n<li>facilitating technologies that enable customers to better manage their usage and bills;<\/li>\n<li>enables conservation and efficiency on the customer side of the meter; and<\/li>\n<li>increases the reliance on non-fossil based generation to reduce overall greenhouse gas emissions.<\/li>\n<\/ul>\n<p>We know already that the short answer is \u201cno\u201d, so CPUC is eyeing a transition to time variant (\u201cdynamic\u201d) rates.\u00a0 According to <a href=\"http:\/\/www.pge.com\/mybusiness\/energysavingsrebates\/timevaryingpricing\/timeofusepricing\/\">Pacific Gas &amp; Electric<\/a> (PG&amp;E), with time variant, or what is often referred to as \u201ctime-of-use\u201d, pricing \u2013 rates \u201cwill be higher during summer weekday afternoons when electric demand is higher, typically noon to 6 p.m., May through October. In return you\u2019ll pay lower rates at all other times. This means that when you use energy is just as important as how much you use.\u201d\u00a0<\/p>\n<p>EDF\u2019s Energy team has been, and will continue to be, closely involved in the CPUC\u2019s rulemaking, which will examine several facets of the current system.\u00a0 EDF has also been involved in the related smart grid proceedings, such as the <a href=\"http:\/\/blogs.edf.org\/californiadream\/2011\/06\/06\/smart-grid-evaluation-framework-will-score-california-utility-plans\/\">deployment of smart grid infrastructure<\/a>\u00a0\u2013 which provides the ability to both measure energy use in real time and inform customers about the costs (and environmental impacts) of their choices to use electricity at different times of the day. \u00a0This Advanced Metering Infrastructure (AMI) enables a smoother transition to dynamic rates for residential consumers.<\/p>\n<p>EDF is very encouraged that the CPUC is considering \u00a0time variant pricing because it will help consumers to be more thoughtful about their energy usage, particularly at times when demand is peaking and pushing electricity supply sources to their limits.\u00a0 This type of rate structure can encourage conservation and reduce peak demand while providing customers with more choices that can ultimately lower their monthly bills.\u00a0 For example, allowing consumers to see how much they can save on their electric bills by reducing their energy use during peak hours will encourage a shift of energy-intensive activities, such as washing and drying clothing and dishes, to off-peak (and less expensive) times of the day.\u00a0<\/p>\n<p>Because a dynamic pricing system will alleviate pressure on the electric grid during peak demand, it will also lead to a more stable, less expensive energy system that is increasingly resilient to extreme weather events.\u00a0 The economic motivation should also help to create an easy way for consumers to make decisions more efficiently, thereby lowering their electric bills and shrinking their environmental footprints. \u00a0\u00a0<\/p>\n<p>Futhermore, dynamic pricing can help integrate renewables and electric vehicles into the electric grid by allowing utilities to respond to price signals more effectively.\u00a0 For example, time-of-use rates support electric vehicle charging at times when grid resources aren\u2019t strained, such as late at night or early in the morning when most people are sleeping.\u00a0<\/p>\n<p>This new approach will facilitate conservation and energy efficiency, as well as an increase in the use of clean energy sources that avoid harmful greenhouse gas and urban air pollution. \u00a0\u00a0If adopted, the dynamic pricing model can be a common sense approach to saving energy and money, while promoting energy efficiency and a <a href=\"http:\/\/blogs.edf.org\/californiadream\/2010\/06\/24\/smart-grids-coming-to-a-california-utility-near-you\/\">smarter, \u201cgreener,\u201d electric grid country-wide<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>This commentary was originally posted on the EDF California Dream 2.0 Blog. Californians are poised for a more functional, data-driven model for setting the prices people pay for electricity.\u00a0 The new model will make the massive differences in costs of providing electricity during the course of a typical day more evident to us as energy &#8230;<\/p>\n","protected":false},"author":3455,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[200,254,84830,72897],"tags":[],"coauthors":[],"class_list":["post-2871","post","type-post","status-publish","format-standard","hentry","category-california","category-energy-efficiency","category-grid-modernization","category-time-of-use"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>A Dynamic Approach To California Energy Use - Energy Exchange<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/energyexchange\/2012\/07\/05\/a-dynamic-approach-to-california-energy-use\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"A Dynamic Approach To California Energy Use - Energy Exchange\" \/>\n<meta property=\"og:description\" content=\"This commentary was originally posted on the EDF California Dream 2.0 Blog. 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