Time-Variant Pricing in NY’s REV

Throughout most of the country, residential electricity customers pay the same price for electricity regardless of when it is consumed. Such flat rates mask the fact that true system costs vary over time according to electricity demand. Prices that better reflect the time-varying costs of producing and delivering electricity can lead to a number of economic and environmental gains, such as reduced wholesale prices, increased investment in clean distributed energy resources, and lower overall carbon emissions. Time-variant electricity pricing gives customers greater control over their electricity bills, since they can use electricity when it is cheaper and cut back when… [more]