Whitepaper
May 16, 2007
The Power of Five Percent: How Dynamic Pricing Can Save $35 Billion in Electricity Costs
Published by The Brattle Group, Inc.
Demand for electricity continues to soar in the United States, pushed along in the short term by events such as last year’s heat storm that broke records in every region of the country and in the long term by the continuing expansion and electrification of the US economy.
At the national level, the peak demand for electricity is projected to reach 757,000 MW during the coming summer. According to the North American Electric Reliability Council (NERC), this number will grow by 19 percent over the next decade. However, since currently committed capacity is projected to grow only by six percent, the demand-supply balance could be significantly stressed in the nation’s power markets.
