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There are two big issues with just having residential consumers pay the spot market price. 1: not all if the costs are energy related. In fact, the cost to bui
by etimberg 6y ago
There are two big issues with just having residential consumers pay the spot market price.
1: not all if the costs are energy related. In fact, the cost to build and maintain the transmission and distribution systems is quite substantial. But that cost is for an average amount of energy over a number of years so it’s hard to turn that into a floating market value
2: There are socioeconomic factors that need to be resolved. Someone who works nights can’t avoid using power during high price times as it may be the only time to do chores. Or someone who works two jobs who can’t afford any fancy equipment to time shift use.