3.14.19 - Con Ed Is Testing Out Congestion Pricing For Electric Bills
'It’s a setup that has long defied the rule of supply of demand: A watt of electricity in New York costs the same whether a residential customer uses it on a mild spring evening, when demand is low, or during an August heat wave, when the usage needle is pinned to the danger zone. As a result, there has been no reason to care whether you’re running your dishwasher or, say, firing up your electric mustache waxer during peak or off-peak hours.'
'Con Edison has noticed and, with the advent of smart meters, thinks it can do something about it. The plan is to reduce spikes in demand by using variable rates—a kind of congestion pricing for residential energy.'
'Bill Aztl of Con Edison says using variable rates to lessen peak demand—and, with it, the need for new substations—could save serious money. “That lowers our infrastructure costs and by doing that we lower our costs for all of our customers,” he said.'