States Consider ‘Surge Pricing’ for Power

Just as more people fly during the holidays and drive during rush hour, the demand for electricity peaks at predictable times. Flights and some toll roads cost the most when demand is highest. Now California wants residents to get used to the same dynamic when it comes to purchasing electricity.Starting in March, the state’s utility regulator will require major utilities to increase prices during the hours when electricity is in high demand and lower prices the rest of the time — a change that’s expected to affect some 6 million households.It’s Uber’s surge pricing, but for your light switch.Electricity might not feel like a hot commodity when you come home to an empty house at 5:30 p.m., but across California, millions of people also are returning from work, bumping down the thermostat a few degrees and throwing in a load of laundry before prepping dinner.All that demand at once forces utilities to ramp up production, typically turning on additional generators that rely on fossil fuels. That costs utilities more, and it releases more dirty emissions.