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Multistage and decentralized operations of Chapter | 16 421

16.3.4 Integration with peak-day pricing plan
PDP is an optional rate that offers businesses a discount on regular summer
electricity rates in exchange for higher prices during 9 15 peak pricing
event days per year, typically occurring on the hottest days of the summer
(PG&E defines summerasMay1toOctober 31). When utilities observe or
anticipate high wholesale market prices, high demand, or a power system
emergency, they call critical events during a specified time period (e.g.,
2 6 p.m. on summer weekdays). The price for electricity during these time
periods is substantially higher, as shown in Fig. 16.4.
The customer has to submit a capacity reservation value, that is, P CR ,
PDP
to the load serving entity, in this case, the utility company. The demand
peaks in different demand periods that exceed the capacity reservation
value will be protected from the demand charges by the PDP policy, that
is, credits will be billed to customers for the exceeding amount. This policy
is modeled by Eqs. (16.10) and (16.11). However, the total energy con-
sumption in kWh below P CR during PDP events will be billed with PDP
PDP
energy charge rate λ PDP , which is modeled by Eq. (16.12).The optimalEV
charging problem with the PDP market participation is summarized in
Problem 2.

p p d X d
R PDP 5 π PDP U ( max L tðÞ 1 p tðÞ ð16:10Þ
n
d
nAN p ðtÞ
dAD PDP
tAT PDP - T P

FIGURE 16.4 Peak-day pricing: event day rates.
Note: Based on A1 rates per kWh as of January 7, 2017