Designing Smarter Time-Varied Pricing
“We do a lot of work around rate design as well, because we’re trying our very best to put as much downward pressure on rates as possible. The whole point of knowing how customers are consuming electricity is so that we can design better electricity rates,” Cook emphasized.
The ability to create detailed load profiles for specific customer segments proved instrumental in rate planning.
“One of the ways we can really use detection and classification is to create more sophisticated load profiles,” Cook continued. “For example, as customers electrify, what does their load profile look like?”
Analyzing behind-the-meter data, Nova Scotia Power discovered that different pricing structures create dramatically different behaviors:
- Standard rate customers with EVs and heat pumps increased consumption during both peak and off-peak periods.
- Time-of-use customers with EVs shifted consumption to off-peak hours, keeping peak usage similar to non-EV customers.
- Critical Peak Pricing customers with EVs and heat pumps dramatically reduced consumption during peak events, falling below average standard offer customers on non-event days.
“It’s incredible to see what the combination of these shiftable electric loads and critical peak pricing and time varying pricing in general can really do,” said Cook.
This granular understanding enabled Nova Scotia Power to identify pathways to beneficial electrification — scenarios in which technology adoption benefits both customers and the grid.
According to Cook, “if we can create this classification model that we’ve talked about and we combine it with time varying pricing, customers who adopt these rates can save on their electricity bill while we’re also saving money as a utility.”
The Goldilocks Zone of Energy Management
Better rate design is only one way that Nova Scotia Power is eager to put data to work to ensure electrification benefits everyone involved. A granular understanding of how customers actually use electricity provides the foundation for smart grid management across the board.
“These insights do help us get closer to the Goldilocks zone where customers are saving, we’re saving, everybody’s saving, and we’re doing things for the grid that are sustainable in the future,” Cook said.
To hear more from Cook and learn more about how Nova Scotia Power is unlocking grid insights with AI meter data analytics, download the full case study about the utility’s data-driven approach to the energy transition, including details about their validation methodologies, comprehensive results, and specific insights that demonstrate how utilities can turn smart meter data into strategic advantage. Or, watch the on-demand webinar, “Nova Scotia Power: Using AI to Optimize TOU Load Shaping.”