Definition: Critical Peak Pricing

Jump to: navigation, search
Dictionary.png

Critical Peak Pricing

When utilities observe or anticipate high wholesale market prices or power system emergency conditions, they may call critical events during a specified time period (e.g., 3 p.m.—6 p.m. on a hot summer weekday), the price for electricity during these time periods is substantially raised. Two variants of this type of rate design exist: one where the time and duration of the price increase are predetermined when events are called and another where the time and duration of the price increase may vary based on the electric grid’s need to have loads reduced;[1]




Related Terms
electricity generation
References
  1. https://www.smartgrid.gov/category/technology/critical_peak_pricing