Electricity Pricing Strategy & Analysis

FSC staff members have extensive experience developing innovative pricing strategies for electric utilities, including the design and evaluation of the nation's largest ever dynamic pricing experiment. Principal Consultant, Dr. Stephen George, was a leading architect of California's Statewide Pricing Pilot (SPP), which examined the load impacts associated with various pricing options targeted at residential and small commercial and industrial customers, including standard time-of-use pricing and critical peak pricing. FSC staff members have also examined even more innovative, dynamic pricing options such as peak time rebates for San Diego Gas & Electric. To date, FSC staff members have estimated the demand response impacts and benefits associated with innovative pricing for nearly a dozen utilities or jurisdictions, including PG&E, SDG&E, NYSEG, RGE, CMP, PSE, NSP, Xcel Colorado, Victoria, Australia, the state of Vermont and a confidential Canadian utility.

In addition, FSC staff members have extensive training and experience in many other aspects of the utility ratemaking process. For example, Principal Consultant, Ross Hemphill, has performed numerous cost of service studies, both embedded and marginal, and applied these results to the design of standard and innovative rate structures. He has evaluated incentive regulatory structures, including price/revenue indexing, earnings sharing mechanisms, cost/performance benchmarking and decoupling utility sales from margin recovery.