Utility experience with real time rates

The structure of electric utilities is undergoing far-reaching changes as new and expanded service options are added. The concepts of unbundling or of priority service are expanding the options open to customers. Spot pricing, or real-time pricing of electricity, provides the economic structure for many of these new service options. It is frequently stated that customers cannot adapt to real-time prices. The authors identify the elements of real-time rates and existing rate structures in the United States and other OECD countries which incorporate these dimensions