Encyclopedia description of the architecture of the IntelliGrid published in 2007.

A method for balancing energy supply with energy demand between a plurality of energy consumers and one or more energy providers, comprising steps for: * providing a statistical model of price-based energy demand characteristics of a plurality of energy consumers; * periodically … determine optimal real-time energy pricing …; * periodically reporting the real-time energy pricing to the energy consumers and the energy providers; * delivering energy to one or more of the each energy consumers from one or more of the energy providers; and * monitoring actual energy consumer energy usage over time ...

In a preferred embodiment of the invention, a system for managing energy, comprising a digital exchange with a communications interface adapted to allow connections from remote users over a data network, is disclosed. According to the embodiment, the digital exchange receives preferences from a plurality of exchange participants, and these preferences are used at least in part to create response profiles relevant to the participants, and at least some of the response profiles are aggregated into response packages with defined statistical properties. ...

Dynamic pricing rates are designed to reduce energy demand at peak hours and enhance economic efficiency. California has deployed advanced metering infrastructure (AMI) and by establishing criticalpeak pricing (CPP) rates as the default tariff for all nonresidential customer classes with AMI.