Fairness and Dynamic Pricing: Comments

Fairness and Dynamic Pricing: Comments. William Hogan, April 30, 2010, Paper. "In “The Ethics of Dynamic Pricing,” Faruqui lays out a case for improved efficiency in using dynamic prices for retail electricity tariffs and addresses various issues about the distributional effects of alternative pricing mechanisms. The principal contrast is between flat or nearly constant energy prices and time-varying prices that reflect more closely the marginal costs of energy and capacity. Dynamic pricing includes time-of-use (TOU) rates with set periods for higher and lower prices, critical peak pricing (CPP) with higher prices applicable on selected..."