Global Power Best Practice Series 4: Time-varying and Dynamic Rate Design

This report, written largely for regulators and policymakers, discusses important issues in the design and deployment of time-varying rates. As used in the report, the term “time-varying rates” encompasses traditional time-of-use rates (e.g., time-of-day rates and seasonal rates) as well as newer dynamic pricing rates (e.g., critical peak pricing and real time pricing). The report’s discussion focuses on residential customers and small commercial customers who are collectively referred to as the mass market. The report also summarizes international experience with time-varying rate offerings.