As Oahu’s electric grid transitions to clean energy, characterized by variable wind, solar, and storage resources, the marginal cost of electricity will become increasingly variable across time and location. Consequently, the value of using locational marginal prices (LMP) for customer billing and compensating distributed generation will increase significantly. This report outlines a proposal to implement a real-time pricing tariff (RTP) for large commercial customers (schedules P and DS), with the University of Hawai’i as the initial pilot customer under the tariff.
