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PG&E highlights demand response, peak pricing trend

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A case study released by the Association for Demand Response & Smart Grid (ADS) examines how Pacific Gas & Electric (PG&E) is engaging its customers around a critical peak pricing program. PG&E's "SmartRate" program began in 2008 and now boasts 100,000 customers.

"This case study highlights a trend where more and more utilities are offering demand response and time-based pricing programs to their customers" said Dan Delurey, executive director of ADS. "As these programs become increasingly available, they become another tool that adds to traditional energy efficiency offerings to customers. Offering both kinds of programs in a unified way is a key consideration for utilities…"

Aside from its long-range view of program design, the success of PG&E's SmartRate program rested on several factors.

First, the utility segmented its customers. Since success was dependent on customer participation, PG&E conducted thorough segmentation analysis before the program began. Next, they deisgned both a communication strategy and the rate program with this mission in mind: to create a clear, convenient, relevant customer experience. Finally, cross-functional delivery teams were created to make sure the product delivered on its promises to customers.

For more:
- see the case study

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