"Dynamic pricing" is pricing at the Grid current price. I.e. at any moment the grid price "varies" depending upon what type/cost of generation is currently operating. By rules, the dynamic price is the weighted average of ALL the generation currently generating.
Dynamic pricing SHOULD be about the best price you can get. That is EXCEPT for the "mark-ups" that your utility adds to be sure they make a profit. How much the mark-up governed by your Public Utility Commission.
Should you opt out - then your pricing is a time-weighted-average of all the generation which was used - PLUS its own separate mark-up. It may be the same mark-up or it may be different. Possibly less, probably more.
The opt-out is probably where you have been to this point. If you're satisfied with what you have had, then opting out should bring no surprise. That is - until the PUC "monkeys" with the mark-up to try to encourage users to switch to the dynamic pricing. Expect that to happen at the next PUC rate-case, typically occurring at three year intervals.
The dynamic pricing and overhead will probably be made "attractive" in the short term. Meanwhile, they buy themselves "additional flexibility" to cut you off when load exceeds generation - a condition going forward more likely to occur than not.
I know what Owner would do. After all I live with him and he explains to me all the nuance of frugality. He would opt on the lesser cost dynamic model, take advantage of the apparent "lower" rates, but use the savings to buy a generator all set to go for when the power actually does shut down. The generator gives you the license to take advantage of the possibly inconvenient but lower rates.
So going dynamic/generator, you ultimately pay what you would under the older rate structure, but you buy yourself "independence" and a generator in the exchange.
One thought...
Dobbin
