Dynamic Pricing Tariffs for DTE's Residential Electricity Customers (2010)

Client Organization: 
DTE Energy
Project Location : 
Summary of Project Idea: 

DTE is one of the largest utilities in the United States, and the company is currently exploring ways to address the reality that peak energy demand will grow more rapidly than overall energy demand.  Serving this peak demand is a very costly part of DTE's business.  With the emergence of advanced meters, Plug-In-Hybrid-Electric Vehicles (PHEVs), and other new technologies, DTE is exploring how these technologies present opportunities to change consumer demand patterns.

The project objectives include to:

1.) Develop 7-10 high-level pricing pilot proposals.

2.) In conjunction with DTE, narrow-in on 3-5 high-potential pilots for further study.

3.) Perform an in-depth analysis on 2 of the following pilots: staggered CPP event windows, free electricity during off peak hours, and TOU block rate pricing or CPP/TOU with enabling technology.  The analysis will be composed of a quantitative assessment of projected loads for each pilot, estimated costs of technology required, and benefits of demand reduction due to avoided purchased power and new capacity.

4.) Use the information gathered in steps 1-3 to generate a document responsive to:

  • MPSC Task 2.3.3 Mid / Long-term Utility-Vehicle Interface
  • Subtask Smart Charging & Smart Grid Interface
  • Manipulating PHEV Charging with Price Control and Charging Windows
SEAS Program Areas: 
Environmental Policy and Planning
Sustainable Systems
SEAS Faculty Advisor: 
Greg Keoleian
Master Students Involved in Project: 
  • Arie Jongejan, MBA/MS Environmental Policy and Planning
  • Brian Katzman, MBA/MS Sustainable Systems
  • Thomas Leahy, MBA/MS Environmental Policy and Planning
  • Mark Michelin, MBA/MS Sustainable Systems
Project Status: 
Past Project