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At least 19 records

Electricity Rate Designs for Large Loads: Evolving Practices and Opportunities

Electricity demand from large load customers such as data centers is projected to grow significantly in the near term. While data centers play an important role in advancing technology innovation and economic growth in the United States, data center energy needs present challenges and opportunities for electricity supply and infrastructure. This technical brief serves as a foundation for the discussion of issues and sharing of perspectives among utilities, regulators, large load customers, and other stakeholders. As utilities and regulators explore rate structures to address growing data center electricity demand, several issues have emerged: -Fair allocation of electricity system costs to large-load customers without unfair shifting of costs to other customers -Appropriate mitigation of the financial risks associated with stranded assets from underutilized utility system investments -Mitigation of operational and resource adequacy risks if electricity demand exceeds supply -Appropriate risk-sharing in commercializing newer electricity technologies such as advanced geothermal, small modular reactors, and long duration energy storage -Accommodating the diverse needs of large-load customers, such as having the option to match electricity consumption with output from carbon-free resources or using onsite generation to provide system capacity The technical brief also identifies key design elements that aim to address these issues and uses leading examples from pending and approved rate structures, agreements, and special contracts to ground the elements in practice.

24 POWER TRANSMISSION AND DISTRIBUTION

Factors influencing recent trends in retail electricity prices in the United States

This study analyzes the primary drivers of recent state-level trends in U.S. retail electricity prices. We summarize pricing trends, explore descriptive relationships, and employ regression models to quantify the influence of various factors. Although the recent national rise in retail prices has largely tracked inflation, state-level trends vary widely. We identify a number of factors that explain trends in subsets of states. States with the greatest price increases typically exhibited shrinking customer loads—partially linked to growth in net metered behind-the-meter solar—and had renewables portfolio standards (RPS) in concert with relatively costly incremental renewable energy supplies. By contrast, recent utility-scale wind and solar deployment that occurred outside RPS programs (but that benefited from tax incentives) had no discernible impact on increased retail prices. Hurricanes, storms and wildfires also contributed to sizable price increases in some states, most notably in California, where wildfire risk mitigation and liability insurance were major cost drivers. Fluctuations in natural gas prices—particularly following the onset of the Ukraine-Russia war—further contributed to sharp price increases through 2022–2023 in many states, with moderation in 2024. The relative influence of these factors varies across states and over time, and relationships may change in the future. Nonetheless, the findings underscore the diverse set of price determinants and highlight the need for continued research to inform effective policy and ensure customer affordability.

Customer load

Potential Impacts of Dynamic Electricity Pricing in California: Load Shape and Customer Bill Impacts Under Elastic Customer Response

The increasing penetration of renewable energy in California has intensified grid management challenges, exemplified by the “duck curve” and the resulting need for steep ramping and curtailment of renewables. To address these issues, dynamic electricity tariffs that vary in near-real time are being considered to incentivize customers to shift demand and support the grid. This study extends previous work on the bill impacts of such tariffs in the absence of load response by quantifying the system-level and customer impacts of load response based on customer price elasticity. Customer-level load response modeling was conducted using meter data from 411,000 customers across residential, commercial, and industrial sectors. Customer demand elasticity was estimated using literature-based values, with scenarios ranging from low to high elasticity, including an automation-enhanced scenario. Results indicate that universal adoption of, and response to, dynamic tariffs can significantly reduce peak net load (by 15%) and maximum ramping requirements (by 20%) with moderate elasticity, delivering demand response resources comparable to or exceeding current programs at all elasticity levels. Bill analysis shows that, when responding elastically to dynamic prices, most non-PV customers experience modest savings, while PV customers may see higher effective rates due to lower compensation for exports during low-price periods. Emissions analysis reveals a reduction in per-kWh emissions system-wide, with a total absolute load increase of 2% accompanied by a negligible absolute emissions increase. The study concludes that while dynamic tariffs offer substantial grid benefits, customer bill savings under modeled response behaviors may be too modest to drive widespread adoption without additional incentives or enabling technologies. Future research should model flexible loads and advanced control technologies with greater fidelity to better represent the potential opportunities of dynamic tariffs.

24 POWER TRANSMISSION AND DISTRIBUTION

Electricity Rate Designs for Large Loads: Evolving Practices and Opportunities 2026 Update

Electricity demand from large-load customers such as data centers is projected to grow significantly in the near term. While these large loads play an important role in advancing technology innovation and economic growth in the United States, meeting their energy needs requires utilities and regulators to consider important operational and financial risks, such as insufficient energy supply or underutilized investments, that can impact all customers. This paper builds on similar research published in January 2025, providing an overview of how utilities and regulators are managing these risks through different tariffs, including rate structures and electric service agreements. Regulators, utilities, customers, and other stakeholders can use this paper as a foundation when discussing issues and sharing perspectives on developing or reviewing large-load tariffs.

24 POWER TRANSMISSION AND DISTRIBUTION

Dynamic Boundary Microgrids Under Privatization Considerations

Microgrids have physical, electrical, and logical (data, network, and ownership) boundaries. To power unserved customer loads during an outage, microgrids can extend the traditional operational boundaries. This can become complex when considering microgrid-to-microgrid (M2M) interactions where sensitive information such as competitive microgrid operational data is not shared. This work proposes an optimization method coordinated between microgrid controllers and distribution management systems that limits data sharing. The method involves a competitive bidding strategy that maximizes unserved load coverage while minimizing resource utilization and sensitive operational data sharing among entities. The work is validated on a two-microgrid system with photovoltaic and energy storage systems and curves of load derived from real world residential buildings datasets. Results show that the proposed method, when applied for three distinct use cases of energy storage sufficiency to cover the predefined boundary and/or the expanded boundary, can successfully select and bid the available load coverage.

Starke, Michael [ORNL] (ORCID:0000000221211195)

California Price Response Potential Study

California's energy landscape is undergoing a significant transformation, driven by the increasing integration of renewable energy sources, the increased adoption of distributed energy resources, the electrification of end-use loads, and the growing need for grid efficiency. To address these challenges, recent revisions to the State’s Load Management Standards (LMS) require all of California’s large utilities and community choice aggregators (CCAs) to offer dynamic electricity pricing options to customers by 2027. Dynamic pricing, which involves varying electricity rates based on real-time supply and demand conditions, offers a promising solution for optimizing grid operations, reducing costs, and incentivizing efficient use of grid capacity. Effective implementation of dynamic pricing requires understanding the potential impacts on customer bills, system load, and the cost-effectiveness of automation technologies. This study aims to evaluate the load response of various end-use devices to hourly dynamic prices. The end-uses studied here are space cooling, space heating, water heating, crop irrigation, pool and spa pumps, and electric vehicle (EV) charging, all for both residential and commercial applications, except for crop irrigation. In 2030, these end uses are forecasted to account for 18% of annual electricity demand in the state, but 40% of demand in the peak net load hour. By modeling possible price-responsive load dispatch algorithms and assessing the resulting impacts on both individual bills and the overall grid, we seek to inform policymakers and utilities about the potential benefits and challenges associated with dynamic pricing, and considerations for the design of dynamic pricing tariffs. Additionally, we will explore the cost effectiveness of adopting automation technologies to enable devices to respond more effectively to real-time price signals. This study considers a range of price profiles, accounting for differences across utilities and customer classes, and presents scenarios for dynamic price design via variation in the percentage of total customer electric costs that are allocated dynamically (versus constituting a fixed portion of the hourly volumetric price). We present results focused primarily on 2030, forecasting electricity prices under both low and high-cost scenarios, to inform longer-term tariff design considerations. We design tariffs by starting with 2019 prices that were calculated according to CalFUSE guidance (CPUC, 2022) and that have been used in recent studies; these prices are all-in volumetric rates that vary by utility and are revenue-neutral to each customer class. They are developed by considering six electricity cost components that are allocated hourly based on system load indicators (gross and net load, and wholesale prices). These prices are forecasted to 2030 for low and high cost scenarios, considering recent trends in total electricity costs with and without years of substantial wildfire mitigation investments. These tariffs, which allocate all costs on an hourly basis, are considered our “Full” dynamic tariff design scenario, while two additional scenarios explore allocating a portion of costs as a flat volumetric charge: the “Medium” scenario allocates 50% of revenue dynamically (and keeps 50% flat), while the “Mild” scenario allocates 20% of revenue dynamically. The 20% dynamic allocation on the Mild scenario aims to represent a case where only the marginal operating costs of the grid are included in the dynamic price.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Networked Microgrid Topology Reconfiguration to Promote Fairness in Proactive Load Shedding

Increasing occurrences of natural disasters and grid emergency events consistently challenge the safe and reliable operations of power systems. During such emergency situations, system operators may proactively shed load to mitigate risks. However, uncoordinated implementation of load shedding may disrupt electricity supply and even lead to cascading failures. Meanwhile, it is crucial to address potential biases affecting different customers when executing load shedding. This paper addresses the dynamic topology reconfiguration problem for networked microgrids with distributed energy resources under emergency conditions. Specifically, we propose a novel rolling-horizon optimization model that integrates fairness-aware constraints into the networked microgrid topology reconfiguration. Unlike existing approaches that focus solely on efficiency or apply fairness considerations in static settings, our method explicitly incorporates temporal fairness constraints to restrict repeated or excessive load curtailment for load blocks. Moreover, the fairness-aware constraints are specifically developed for the context of dynamic networked microgrid topology reconfiguration, and are designed to be convex or amenable to linear reformulations, which offers a more tractable alternative to traditional models with non-convex formulations. Numerical studies on a modified IEEE 13-bus system and a larger-sized SMART-DS networked microgrid system demonstrate the performance of the proposed algorithm towards more fairness-aware networked microgrid topology reconfiguration decision-making.

24 POWER TRANSMISSION AND DISTRIBUTION

In-Situ Scanning Electron Microscope Experiments for Microscale Mechanical Testing and Validated Modeling of Fiber Reinforced Thermoplastics

A novel, in-situ, scanning electron microscope (SEM) mechanical testing capability for materials at the microscale which provides experimental validation to a machine learning (ML) toolset for full-field validation of physics-based micromechanics models is being developed by researchers at NASA Glenn Research Center. These are enabling technologies for the integration of multiscale digital twins for materials into system level models which will result in the improved performance, material discovery, reduced production cost and time, rapid characterization, and prognostic structural health monitoring (SHM) for materials and structures for extreme environments in support of NASA space exploration missions. In order to bridge the material structure-to-system gap for digital twins, physics-based models must be experimentally validated at multiple length scales. Seminal microscale experiments, conducted at the Air Force Research Laboratory (AFRL), were limited to transverse compression of single-layer, unidirectional thermoset polymer matrix composite (PMC) micropillar specimens [1]. The early phases of the current project followed those initial results and setup to reproduce the compression testing of PMC material on the custom-built piezoelectric actuated micromechanical testing rig built by MicroTesting Solutions LLC. In this work, samples of thermoplastic PMC material were first machined into 3 mm cubes, and then further machining and final milling was done using a Focused Ion Beam (FIB). The initial experiment was done on a pillar roughly 20 µm x 20 µm x 40 µm tall. Additional pillars were milled with final sizes ranging from 20 µm x 20 µm x 40 µm tall to 40 µm x 40 µm x 65 µm tall. A speckle pattern for in-situ full-field measurements using Digital Image Correlation (DIC) was applied with platinum, which was coated on the surface, and then the FIB was used to mill away some of the coating to produce an irregular pattern of Pt on the pillar surface. The samples were loaded into the custom testing rig and placed into the SEM and loaded under compression until failure. Images were collected in the SEM during testing. Post-processing of the images was conducted using DIC to obtain full-field displacement and strain measurements elucidating the role of the matrix as well as fiber-fiber interaction at the microscale within the composite subjected to compression loading well into the non-linear regime of the material. Moreover, the evolution of fiber-matrix debonding and matrix cracking is observed in-situ at the microscale. This data, along with images segmented with a newly developed ML toolset [2], was used to create and validate physics-based micromechanics models. An image of the failed micropillar is shown in Figure 1. The techniques developed in the initial compression experiment was tailored to the validation needs of the models and expanded to include different sized samples as well as possibly tension and fatigue.

Laura Wilson

Characterization of 6 Li-loaded pulse-shape-discriminating plastic scintillators

Lithium-loaded organic plastic scintillators combine sensitivity to γ rays with the ability to detect both fast and slow neutrons, making them valuable for applications in nuclear security and in basic nuclear and particle physics. The goal of this work is to characterize the neutron response of two custom lithium-loaded organic plastic scintillators developed at Lawrence Livermore National Laboratory. Both are ternary polystyrene-based formulations containing 1.5 wt.% 6 Li salts of isobutyric acid, but they differ in their primary and secondary dye compositions: one uses m-terphenyl as the primary fluor and with Exalite 404 as the wavelength shifter, whereas the other uses 2,5-diphenyloxazole (PPO) and 9,10-diphenyl-anthracene, respectively. The temporal response of the scintillators was measured via time-correlated single photon counting for γ-ray and neutron events. The proton light yield was measured using the double time-of-flight technique from 1.3 to 15 MeV at the 88-Inch Cyclotron at Lawrence Berkeley National Laboratory. For the slow neutron response, an AmBe source moderated with polyethylene was used, and the light output from the 6 Li(n,α)t reaction was characterized. Differences in ionization quenching and temporal response were observed between the two materials with the PPO-containing scintillator exhibiting higher ionization quenching. These results provide performance benchmarks that can guide the design and optimization of future lithium-loaded plastic scintillators for use in basic science and applications.

46 INSTRUMENTATION RELATED TO NUCLEAR SCIENCE AND

Recovery Simulator and Analysis Formulation: Mathematical Framework for Enhanced Resilience and Resource Allocation

This report introduces recovery simulator and analysis (RSA), a framework aimed at enhancing the resilience of electrical grids post-disruption. The RSA model leverages an optimization problem formulation that focuses on maximizing the load served (or optionally customers served) through a coordinated and cooptimized recovery of non-black start generation, transmission lines, feeders and substations subject to labor budget constraints. By integrating advanced linear programming techniques, the simulator selects efficient reocovery pathways, optimizing both short-term and long-term grid recovery strategies. The mathematical framework guides decision-making through a comprehensive evaluation of potential recovery actions, factoring in the trade-offs between labor constraints and load (or optionally customer) restoration efficacy. This enables grid operators to simulate diverse outage scenarios and delineate optimal recovery pathways, thereby prioritizing critical repair tasks and ensuring resource allocation is both economical and effective. The intended use case of RSA is to allow planners to explore many recovery scenarios quickly and determine assets most critical across a wide range of scenarios, and therefore strong candidates for hardening or additional investment. RSA might also be used in an operational setting, following a single event, for exploring efficient recovery pathways.

24 POWER TRANSMISSION AND DISTRIBUTION

Transmission Cost Allocation Practices

This technical brief summarizes approaches to allocating costs of transmission facilities between generators and loads, jurisdictions, and customer classes, and based on project drivers. The brief also discusses planning approaches, stakeholder engagement, considerations for using counterfactuals for cost allocation, and Federal Energy Regulatory Commission and court decisions on cost allocation proposals.

24 POWER TRANSMISSION AND DISTRIBUTION

Future Industrial Demand: Large, Elastic, and Concentrated [Guest Editorial]

Here, the future industrial demand on the grid is expected to be large, price sensitive, and concentrated. Grid industrial demand increasingly encompasses a new customer type defined as a large flexible load (LFL). This LFL type defines customers with consumption that responds quickly to price or other incentives without interrupting their core business process, such cryptocurrency mining. This customer type can often ramp up and down quickly, which across an entire industry can mean gigawatts of power within a few minutes. In addition to these price-sensitive loads, significant growth is also anticipated in sectors like manufacturing, data centers, and electrification of transportation and buildings.

Mukherjee, Srijib [Oak Ridge National Laboratory (

Rewarding Grid-Friendly Behavior: Estimating the Potential Bill Reduction and Load Shifting Benefits of Dynamic Prices

Shifting electric load from times of peak demand can be a key strategy to slow price growth as reducing peak demand avoids the cost of upgrading generation, transmission and distribution infrastructure. Utilities are releasing time-varying prices, such as time of use rates or dynamic prices, to incentivize grid-friendly load shifting. New dynamic price programs provide insight into the true cost of operating electricity grids and the potential economic benefits of load shifting. Program developers and device manufacturers need to understand the economic opportunities in terms of 1) the variation in prices across hours, days, and seasons; 2) the change in utility bills for customers who don’t shift load; and 3) the potential load shifted and economic value of different technologies if manufacturers or aggregators deploy price-responsive controls. This paper estimates possible impacts of dynamic price adoption and load shifting controls if customers paid the dynamic rate from one pilot program. Statistical analysis of historical prices identified annual and seasonal metrics as well as representative price curves for each circuit in the pilot. Simulations for residential technologies with price-responsive controls including unitary heat pump water heaters, central multifamily heat pump water heaters, heating & cooling + storage systems, and pool pumps estimated the potential impacts of highly dynamic prices both with and without load shifting controls. Results showed the potential to reduce electricity costs on representative days by 42-94% and reduce consumption during times of high electricity prices by 63-100% compared to baseline operation for those flex-friendly devices.

Grant, Peter

An innovative radial gradient material design using hot isostatic pressing for applications in extreme environments

Functionally graded materials (FGMs) are highly advanced continuous or discontinuous structures whose structural and material properties vary along a singular geometric dimension either in the axial or radial direction. Here, the radial gradient FGM design makes for an optimal structural design to incorporate a bi-metallic structure with a copper-based high entropy alloy (Cu-HEA) with good mechanical properties and high irradiation resistance, and Chromium (Cr) with great corrosion resistance. This study focuses on the experimental design of a metal powder loading mechanism to fabricate a bi-metallic radial gradient structure using Cu-HEA and 99.9 % pure Cr metal powders. The powder loading strategy uses custom-designed concentric cylindrical dividers to separate the individual compositions. Two benchtop trial runs were performed for design optimization. The optimized design was then implemented to eventually load the HEA and Cr powders for consolidation via powder metallurgy hot isostatic pressing (PM-HIP). The electron microscopy analysis reveals the successful fabrication of the radial gradient structure with the chemical mapping analysis, demonstrating the gradual composition shift from the HEA at the center to the pure-Cr at the periphery via a three-step gradient.

High Entropy Alloys (HEAs)

Demonstrating the data center as a flexible grid asset using a C-HIL setup

Increasing data center demand is outpacing grid infrastructure development. Artificial intelligence workloads and hyperscale cloud growth are creating unprecedented demand for power, while traditional grid expansion faces multiyear development timelines. Verrus is developing an innovative datacenter solution for this challenge, data centers that act as active grid-supportive assets rather than passive loads. Our approach integrates a novel grid-aware power flow management system with battery energy storage systems(BESS) into a microgrid-controlled, medium-voltage power distribution architecture that delivers critical capabilities, such as: * Fast response to grid disturbances such over/ under voltage or over/ under frequency * Demand flexibility that can service requests from the utility within 10 s * Uninterrupted transition to islanded operation during grid outages * Continuous uptime assurance for compute loads while maintaining all customer service level agreements. Through Verrus' strategic partnership with the National Renewable Energy Laboratory (NREL), these capabilities were validated using NREL's Advanced Research on Integrated Energy Systems (ARIES) virtual emulation environment to model a 70-MW grid-interactive data center. This paper outlines the design, methodology, and results of this emulated deployment, demonstrating that data centers can provide both critical load resilience and ancillary grid support without compromising uptime requirements. Specifically, we present a digital real time simulation of a 70 MW data center integrated with a physical microgrid controller, and demonstrate the data center response in the event of a grid voltage and frequency event, utility demand response request and utility outage.

24 POWER TRANSMISSION AND DISTRIBUTION

Progressing Analysis of Variable Electric Rates (PAVER) Study

The Progressing Analysis of Variable Electric Rates (PAVER) study analyzed the impact of a range of time-varying electric rates on the performance of a regional electric grid and the resulting costs for participating and non-participating customers. This analysis leveraged and extended the work of PNNL’s Distribution System Operator with Transactive (DSO+T) study. Five different rate designs were included: a flat volumetric energy charge, a typical Time of Use (TOU) rate, a dynamic energy (DE) rate (based on wholesale locational marginal prices), a dynamic energy and capacity (DE+C) rate, and, finally, a Block and Swing (B&S) rate that billed customers based on their average load profile at constant pricing, but used the DE+C dynamic price for load deviations from their average profile. These rates were analyzed in a large-scale co-simulation of an entire regional grid with a customer population representative of the current state. A large fraction (80%) of residential and commercial customers were assumed to participate in these time-varying rates with automatically controlled HVAC, water heaters, electric vehicles, and batteries. This study assumed no industrial sector participation. The DE and DE+C rates saw system peak loads reduced by 6-7%, while the large participation in the TOU rate case saw a significant rebound effect and a resulting peak load increase of >5%. The impacts to the annual and peak system demand impacted system wholesale prices and the overall grid operating costs. This cost structure determined the revenue needed to be collected from customers by each rate design. Participating customers on the DE and DE+C rates (located in one of the modeled DSOs) saw reductions in average annual electricity bills of 11-17% with average increases in monthly bill variation of no more than 13%. At such high participation levels, TOU customers saw 10% higher average annual bills (due to system-wide rebound effects) and average increased monthly bill variation of 16%. Residential owners of large flexible loads (such as electric vehicles) saw larger bill savings (17-20%) when on a fully dynamic rate. The presence of on-site generation (such as rooftop solar) did not appear to appreciably change customer outcomes. Customers on the Block and Swing rate did see 6% lower monthly bill variation (as intended) than the flat rate case, but at the expense of appreciable bill savings, which were only 3%, comparable to the savings seen by non-participants. Given this finding we recommend that additional research be conducted into how best various bill protection mechanisms can balance minimizing customer bill variation with providing financial incentives commensurate with the flexibility customers provide. We also recommend that customer outcomes be explored across a range of regions using current actual customer and system cost data.

29 ENERGY PLANNING, POLICY, AND ECONOMY

Design trade-offs for residential retail tariffs and virtual power plants

Retail rate design and virtual power plants (VPPs) have the potential to shift customer electricity demand and provide economic benefits to utility customers. As the adoption of distributed energy resources (DERs) and flexible loads increases, retail tariff and program design can impact Bonbright's rate design principles including affordability, fairness, and economic efficiency. We model the effects of residential retail rates and VPP programs on power system costs in Massachusetts under a potential future system with high renewable energy and DER adoption. We model interactions among retail rate design, demand flexibility, and utility costs and identify trade-offs across different rate designs and VPP programs. We estimate that time-of-use (TOU) rates and VPP programs designed to avoid critical peak rates can lower overall system costs by 3.5 %-4.8 %. These lower costs translate to lower electricity bills for 62 %-91 % of customers, depending on the scenario. Although TOU rates with a critical peak VPP program can benefit all customer segments and are economically efficient, a VPP program with flat rates leads to the lowest overall bills for customers. We find that customers with loads that align with peak demand and who participate in critical peak VPP programs can underpay for their contribution to utility costs and shift costs to other customers. While our assumptions about mandatory TOU and/or critical peak pricing likely impact the magnitude of the results, the results highlight the trade-offs of these tariffs and programs and the importance of tariff and program design as demand becomes more flexible and responsive.

24 POWER TRANSMISSION AND DISTRIBUTION

AMAROK: A Radio Frequency Development Platform for High-Power, Full-Scale Positive Ion Sources for DIII-D Neutral Beam Injectors

Next-generation neutral beam injection (NBI) systems demand RF ion sources capable of efficiently coupling >120 kW at 2–4-MHz frequencies, yet existing designs face voltage standoff and impedance-matching challenges. To address this, the advanced multicoil antenna for RF operations at kilowatts (AMAROK) was developed as a high-power RF inductively coupled plasma (ICP) source delivering up to 200 kW in the 2–4-MHz range via four phase-controlled generators for flexible power sharing. Two antenna designs—a single-strap multiturn (MT) and a multistrap single-turn (ST) design—were evaluated to optimize resonance, impedance matching, and power coupling across plasma loads. Here, a semi-analytical self-resonant frequency (SRF) model, validated experimentally, predicts resonance trends for arbitrary turn counts and tubing diameters, enabling rapid antenna optimization. Strap-to-strap mutual inductance in the ST configuration showed strong spatial dependence, guiding generator operation and total load inductance. These insights informed a custom π -topology matching network, achieving stable impedance matching over a wide range of plasma-driven loads. Collectively, these results position AMAROK as a versatile testbed for advancing high-power RF source technology in fusion NBI applications.

DIII-D