The California Statewide Pricing Pilot Summary

The largest and most comprehensive trial of dynamic pricing to date was carried out by the California investor owned utilities. In a $20 million pilot that involved 2,500 residential, small commercial and industrial customers over a 3-year period, the utilities tested several pricing designs. The results showed that average customers reduced peak demand energy use by 13% in response to prices that were five times higher than standard. Customers with smart thermostats reduced their load about twice as much, by 27%, while those who had "the gateway" system reduced their load by 43%.