1. ELECTRICITY AND TIME- SENSITIVE PRICING Shreyas Muralidharan and Raaghul Senthilkumar

2. TIME SENSITIVE PRICING  Pricing that varies with supply and demand  Reflects the actual cost of producing electricity at the time it is needed  Limits serious disturbances in power transmission in the grid

3. THE PROBLEM  Varying demand of electricity  Utilities must meet these variations in demand  Variable pricing can be used to curtail or encourage use of electricity

4. COST FACTORS  Capital Cost- Construction costs, and maintenance- Low for Fossil fuels, High for Renewable  Fuel Costs- Cost of obtaining energy sources; opposite of capital cost  The fuel costs and capital costs must both be considered.

5. COST FACTORS (CONT.)  Weather  Demand largely driven by temperature  Heating demand in the winter and cooling demand in the summer drive the peaks  Economic Health  During economic hardships, factories cut back production due to a reduction in consumer demand

6. TIME OF USE  People use electricity at different times of the day  This unpredictability leads to increases in power wastage and variances in cost.

7. GOVERNMENT SUBSIDIZATION  The government can promote the use of certain energy sources by decreasing the cost of electricity generated by those resources.  This can decrease wastage and reduce consumer costs.

8. GOVERNMENT SUBSIDIZATION (CONT.)

9. GRID PARITY  Occurs when an alternative energy source can generate electricity at a lower cost than what is currently available on the power grid  Allows for the replacement of expensive energy sources and decreases prices for consumers

10. GRID PARITY (CONT.)

11. DEMAND AND RESPONSE  Attempts to tailor power generation to the demands of people  Mainly focused on matching consumer demand to existing power resources  Designed to shift electricity consumption to off-peak periods  Some Attempts-  Utility control of appliances  Incentives for reducing power usage

12. SMART METERS AND GRIDS  Allows for the regulation of power within the grid  The grid can communicate with itself and channel extra power where the demand is greatest  Reduces overall wastage of power and decreases price

13. ENVIRONMENTAL CONCERN  Awareness of power usage  Reducing use of nonrenewable resources  Anthropomorphism  Effective when referring to Earth as mother

14. REFERENCES  http://tcipg.org/applet-tou http://tcipg.org/applet-tou  http://seekingalpha.com/article/92708-solar-generation-costs-on-track-to-achieve-grid- parity http://seekingalpha.com/article/92708-solar-generation-costs-on-track-to-achieve-grid- parity  http://neinuclearnotes.blogspot.com/2006/12/truth-about-government-subsidies-for.html http://neinuclearnotes.blogspot.com/2006/12/truth-about-government-subsidies-for.html  http://www.tongapower.to/NewsRoom/SmartMeteringTrials.aspx http://www.tongapower.to/NewsRoom/SmartMeteringTrials.aspx  http://en.wikipedia.org/wiki/Electricity_pricing http://en.wikipedia.org/wiki/Electricity_pricing  http://en.wikipedia.org/wiki/Cost_of_electricity_by_source http://en.wikipedia.org/wiki/Cost_of_electricity_by_source