Market-Based Pricing: Curtailable Option

During the summer of 1998, daily and hourly wholesale electric prices hit record highs that were exponentially above previous highs. The price spikes drew the attention of many, including some large commercial and industrial customers who indicated that they would be willing to curtail their consumption of firm electric service if compensated at such levels. WPPI Energy’s Market-Based Pricing: Curtailable Option was designed in response to this expressed customer interest and was the first offering of its type in Wisconsin.

The Market-Based Pricing: Curtailable Option provides retail customers with the option (but not the obligation) of curtailing firm usage during high price conditions for a payment tied to the market price of energy at the time the customer curtails load.

This curtailable option is designed to produce demand elasticity, which should dampen price spikes and protect customers that must have an uninterrupted supply of power.

The Market-Based Pricing: Curtailable Option is available to any customer who meets the following eligibility criteria.

  1. The sum of the monthly peak demands during the last complete calendar year must be greater than 60,000 kW.
  2. The Participant must have 2000 kW or greater of firm load that they are able to curtail during emergency situations.
For more information, contact Energy Services Representative Weston Arndt at (715) 246-4167.

Market-Based Pricing: Curtailable Option Flier