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Critical peak pricing

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Definition Edit

Critical peak pricing is

[a] dynamic pricing plan that combines peak/off-peak time-of-use rates with substantially higher "super-peak" rates that apply only to peak hours on a limited number of critical days during the year. Critical days typically are announced the day before, on the basis of forecast market conditions.[1]

References Edit

  1. Massachusetts Inst. of Tech., The Future of the Electric Grid, Glossary, at 262 (2011) (full-text).

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