Definition: Critical Peak Rebates

From Open Energy Information


Critical Peak Rebates

When utilities observe or anticipate high wholesale market prices or power system emergency conditions, they may call critical events during pre-specified time periods (e.g., 3 p.m.—6 p.m. summer weekday afternoons), the price for electricity during these time periods remains the same but the customer is refunded at a single, predetermined value for any reduction in consumption relative to what the utility deemed the customer was expected to consume.[1]

Related Terms
electricity generation

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