Brattle Principal Ahmad Faruqui Co-Authors Article on Dynamic Pricing and Low-Income Customers for Public Utilities Fortnightly

Brattle principal Ahmad Faruqui and Lisa Wood, executive director of the Edison Foundation’s Institute for Electric Efficiency (IEE), co-authored an article published in the November 2010 issue of Public Utilities Fortnightly. The article is based on a whitepaper prepared by Brattle consultants for the IEE that examined simulations involving dynamic pricing and reviewed the empirical evidence from some recent dynamic pricing programs.

In the article, “Dynamic Pricing and Low-Income Customers,” Dr. Faruqui and Dr. Wood discuss the two types of dynamic pricing that have garnered the most attention within the power industry, critical peak pricing (CPP) and peak-time rebate (PTR), and the studies that have been conducted to test the effects of each. They conclude that low-income customers do respond to dynamic rates, and many experienced benefits even without shifting their load in response to price signals.