PLMA Publishes Thought Leadership Piece on Electricity Pricing; Plans Launch of a New Pricing Interest Group

Posted to PLMA in the Load Management Group
Judy Knight's picture
Chief Development Officer PLMA

As PLMA's chief development officer, I am responsible for developing robust opportunities and programs to serve our members. In addition, I am responsible for communications, education and...

  • Member since 2020
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  • Sep 2, 2020

PLMA has published a 10-page excerpt from its planned November publication, Thought Leadership Compendium 2020, Vol 1, titled “Why is Electricity Pricing So Difficult? Between a Rock and a Smart Meter.”

Originally presented as a PLMA webcast, this highly engaging discussion among three industry experts explores the potential and challenges of time-differentiated and dynamic pricing, where the barriers to these approaches lie, and how to design electricity pricing options that customers actually understand, and want.

Electricity Pricing Highlights
Highlights of this excerpt by Ahmad Faruqui of the Brattle Group, Bill LeBlanc of E Source, and Derek Kirchner of Consumers Energy include:

  1. The challenges of modulating system peaks and addressing the belly of the duck curve when the price signals and marginal cost of energy are disconnected from one another;
  2. Customer preference for traditional flat rates despite the higher cost these represent to them, and the increased risk they represent to the utility;
  3. The opportunity smart meters and associated technologies present and how these can be used to help customers easily and effectively manage their energy use while spending less.

“Customer expectations of service providers in all sectors continue to increase as new and better approaches to pricing, billing, and customer engagement extend throughout the economy. In this context, energy pricing is an area of rich opportunity for utilities to help customers make cost-effective decisions about their energy usage. Signaling customers with timely pricing information can also help reduce utility business risk,” said PLMA Vice Chair, Rich Barone. “PLMA is addressing this important opportunity with the launch of a new Pricing Interest Group to focus on effective pricing strategies and approaches that benefit all energy stakeholders.”

Pricing Interest Group Opportunity
PLMA Interest Groups provide PLMA member practitioners with a collegial environment to learn from and network with peers who share similar interests. Staff of PLMA member organizations are welcome to join any PLMA Interest Group; five are currently offered including Customer Engagement, Connected Devices, Global Load Management, Women in Demand Management, and DER Integration. To get involved as a participant or as a volunteer leader in PLMA’s planned Pricing Interest Group, please contact PLMA’s Executive Director Rich Philip at


PLMA offers a forum for practitioners to share their expertise in dynamic load management, demand response (DR), and distributed energy resources (DER). Members include utilities, tech companies, energy + solution providers, manufacturers, and more.

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