Pricing of electricity has caused a disconnect between the consumer and producers. Current methods for pricing electricity are non-inventive and do not reflect the actual costs of production. If producers were capable of monitoring electricity use by the end user, they could potentially assess greater fees associated with consumption during specified periods. To gain access to critical usage information, producers are testing out the theory of a smartgrid. This proposed smartgrid is a system of communicating, actuating and reporting devices that give system operators the capability to observe consumption on a scale unseen before. Price signals from new dynamic pricing plans motivate consumers to change their consumption habits. Producer’s main goal is to slow the growth and intensity of daily and annual “peaks” in energy consumption. By helping to lower peak, consumers have the potential to encounter lower energy bills, more accessible alternatives to carbon based energy and potentially, profit from the sale of electricity back to the grid through smartgrid technologies. This paper uses information from the SmartGridCity project by Xcel Energy in Boulder, Colorado. Raw data from multiple pilot programs in Denver, Colorado, and consumption data from Colorado Springs Utilities is also used. A smartgrid enabled society with access to dynamic electricity rates shows to be a step forward in the solution making processes surrounding the use of energy.
Includes bibliographical references.