Domestic Experience

2006 TOU Pricing Pilot Designed TOU pricing pilot for competitive retailer. Provided subject matter expertise for regulatory, operational readiness and marketing activities.

2005 – 2006 Building Linkages between Wholesale and Retail Markets through Dynamic Pricing (Neenan, UtiliPoint) For New England ISO (ISO-NE), UtiliPoint (Neenan Associates) conducted a study to estimate the level and distribution of benefits associated with the adopting of default service rates that tie energy charges to hourly wholesale spot market prices. The study, which included the six New England states, simulated both supply and demand circumstances over a multi-year period to quantify how price responsive behavior by customers (over 100 kW) that pay hourly prices that are indexed to day-ahead spot market LMPs influenced the level and volatility of LMPs and capacity costs. The study demonstrated that the benefits would exceed $300 million over five years under very conservative assumptions.

A subsequent analysis focused on Connecticut customers over 350 kW to quantify the benefits of adopting a three-part, dynamic time-of-use rate as the default service in that state, beginning in 2007. The study showed that the proposed variable peak pricing (VPP) TOU rate was superior to a conventional TOU design, and achieved three-quarters of the benefits associated with an RTP-type default rate design. ISO-NE submitted the results for a retail rate filing with Connecticut’s Department of Public Utility Control.

2002 – Present California Energy Commission (CEC). Working with Lawrence Berkeley National Laboratory (LBL) to evaluate how customers that were forced on to RTP service at the onset of retail choice implementation have coped with market volatility, whether they took measures to become price responsive, or chose instead the security of a financial or physical hedge.

2002-3 CPP/TOU Pricing Pilot. Designed CPP/TOU pricing pilot for a large investor owned utility for commercial customers. Provided subject matter expertise for costing, pricing, regulatory, and marketing activities.

2002 CPP / TOU Program Evaluation. Evaluated potential commercial CPP and TOU pricing programs for a mid-sized utility.

2002 Community Energy Cooperative. Designed RTP pilot for residential customers using a one-part RTP rate with usage prices indexed to day-ahead wholesale market prices. Developed implementation requirements, including pilot treatments and sample design, marketing and education programs, and requirements for program support systems and implementation. The initial pilot attracted over 400 participants during the summer of 2003.

2002 Headroom Analysis for a National Electricity Retailer. Provided an analysis of competitive margins from the perspective of an ESCO that intends to induce customers to switch from the incumbent utility to its service and to serve those customers using the northeast ISO capacity, energy, and firm transmission rights markets.

2001 American Electric Power. Provided estimates of expected customer usage levels (CBL) under different methodologies to illustrate their effects on potential revenue from demand response programs for different customer load shapes.

1998-2000 Central and Southwest Services – Demand Response Program Evaluation. Conducted process and response evaluations of TOU and RTP programs, the former a pilot program offered to commercial customers and the latter a program that had been in place for several years with over 75 industrial customer participants. Process evaluations focused on comparing customers’ expectations from participation with their actual experience, and characterizing the key drivers to participation. Price elasticities were estimated to quantify participants’ response to the program’s price variability.

1999 Central and Southwest Services. Designed and implemented a survey to measure customer preferences for alternative electricity pricing structures. The responses from over 750 surveys revealed that almost 50% of residential and 60% of commercial and industrial customers preferred a time-differentiated rate to a flat rate with a higher premium. TOU was the first choice of over a third for both groups, with the rest split between RTP and critical peak pricing, where the latter involves interruptible call options attached to a base rate of their choice. The scores on intent to act suggest that such products would be well received by consumers, a majority of which indicated that the availability of electric service choices should not be delayed until markets were opened to competition.

1997 – 1999 Central and Southwest Services. Designed, and supported the implementation and evaluation of, a flexible time-of-use (TOU) rate that allowed commercial customers (20 kW and above), to customize a TOU rate to fit their circumstances and ability to shift load. Customers could choose between three alternative definitions of the peak hours (4, 6, and 8 consecutive hours) and among three alternative peak to off-peak price ratios. These features provide virtually every customer with an opportunity to save money by shifting load, demand-free expansion, or a combination of actions. The revenue-neutral design, fashioned after the two-part RTP originated at Niagara Mohawk, and a no-lose guarantee made participation virtually risk free. The pilot attracted over 500 participants and confirmed that customers of all sizes can benefit from a customized TOU rate.

1995-2000 Deregulation Rate Design and Innovative Rate Program Development (J.B. Long and B. J. Scott while employed at CSW).  Developed and provided market research for innovative rate initiatives including RTP, TOU, and Green Pricing (“Clear Choice”) programs. Analysis of potential rate increase impacts on key accounts. Establishment of default electric rates, known as “price-to-beat” for CSW’s 1 million Texas customers. Work involved profitability modeling by rate and customer class, predictive modeling of customer “switching” characteristics, preparation of necessary regulatory filing for “price-to-beat” rate designs.

2005 Hawaii Electric Company. Designed voluntary, mandatory and direct load control demand response programs. Conducted focus groups and estimated market penetration and response potential.

2003 - 2005 Independent System Operator of New England (ISO-NE). Evaluated the performance of ISO-NE’s demand response programs. Made recommendations for how to incorporate these programs into the standard market design ISO-NE was adopting. Recommended modifications to improve future performance.

2002 – Present U.S. Department of Energy (DOE). Working with Cornell University’s experimental economics laboratory faculty to resolve key issues regarding the value of participation in demand response programs by commercial and industrial customers.

2001 – Present New York Independent System Operator (NYISO). Measure the performance of demand response programs and characterize the drivers and barriers to participation using comprehensive program evaluation methodologies, developed by Neenan Associates. Recommend modifications to improve future performance.

2001 – Present New York State Energy Research and Development Authority (NYSERDA). Evaluate the contribution of NYSERDA programs implemented to increase participation in and curtailments to events in NYISO’s demand response programs. Develop recommendations for the scope and structure of future programs. Design and administer programs to assist customers in understanding how they can benefit from participation in PRL programs.

2001 Utility in the Northeast U.S. Conducted a benefit/cost evaluation of participating in the ISO-sponsored demand response programs and recommended what actions should be undertaken to enroll customers in these programs.