Making the Transition: Prerequisites to Product Differentiation

Abstract

Much debate has taken place over the feasibility and merits of diversifying the electricity product (i.e., temporal and spacial product differentiation). Niagara Mohawk Power Corporation has engaged in numerous forms of electricity product differentiation, through real time pricing, priority service and advanced time-of-use offerings, and has gained a number of practical insights into making the transition from standardized service offerings to diversified ones. It is this practical experience that I wish to share with you through this presentation.

Bob Mango is the Director of Electric Rate Design and Evaluation at Niagara Mohawk Power Corporation, Syracuse, New York. The author gratefully recognizes the substantial contribution Bemie Neenan made to the formulation and refinement of these ideas. The author remains solely responsible for any errors that this manuscript contains