The second wave began in the mid-1980s
There is an excellent paper by the Rand Institute from this time period which delves deeper into this.
6 Matching Annotations
- Feb 2026
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www.brattle.com www.brattle.com
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Itshowed that customers reduced peak-period energy use in response to time-varying prices.
Reduction in peak demand was lower than this sentence suggests, and was mostly caused my new smart appliances, which low income customers could not afford.
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about factors that improve customer responsiveness during peak demand period
Factors like non-adoption of the new rates, lack of smart metering affordability, and customer ambivalence.
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Some of these pilots featured enablingtechnologies such as in-home displays and smart thermostats
These pilots would eventually lead to smart appliances becoming one of the keys to RTP being successful at lowering prices.
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dynamic prices may or may not be known in advance and the time period over whichthe prices are invoked may or may not be fixed in advance.
A complicated way to say that prices can change unexpectedly. This also carries the risk of bill shocks to customers.
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he 2000–01 California energy crisis gave impetus to the next wave of pilots with time-varying rates. In addition toTOU rates, they featured dynamic pricing designs
There is a distinction between "dynamic rates" and "TOU rates." Dynamic rates change fluidly, while TOU rates are set months or years in advance. TOU rates are the modern standard for pricing in CA and the US more generally.
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