Xcel Energy Files Pricing Pilot for SmartGridCity

Xcel Energy filed recently for an electricity pilot pricing program with the Colorado Public Utilities Commission (CPUC) to coincide with implementation of SmartGridCity™ in Boulder, Colo. The pilot will include no more than 2,000 customers and is designed to provide customers with better price signals so they can make informed decisions about their energy use.

The program is expected to produce reductions in consumption during on-peak periods or to shift some consumption to off-peak periods. Residential customers in Boulder who have a smart meter can choose to participate in the pilot, which will run until Dec. 31, 2011.

The program will allow participants to opt into a Time-of-Use (TOU) rate, a Critical Peak Pricing (CPP) rate or a Peak Time Rebate (PTR) rate.

The TOU rate divides the day into on-peak periods, when energy costs more, and off-peak periods, when energy costs less. The CPP rate builds on the Time-of-Use rate. If needed, the Critical Peak Pricing can be invoked for capacity or economic reasons and increase the price significantly above the on-peak price.

The Peak Time Rebate encourages customers to reduce their usage below what they would normally use at a Critical-Peak time. Customers receive a credit for the energy saved on their bill, based on the CPP pricing. Customers will be notified of a Critical-Peak day the day before it is to take effect.

"We hope that the differing rates will help customers understand the true cost of electric service on the greatest energy use days of the year," said Jay Herrmann, regional vice president for Xcel Energy. "We believe that this is one of the critical pieces of our overall SmartGridCity project. By informing customers of the cost of service for these various programs, we think customers will reduce their use accordingly."

 The rate structure was filed with a request to the CPUC that it be implemented by June 2010.

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