Thanks Nathan. I think the answer is to offer time-varying pricing on an optional basis, preferably an opt-out basis. People who want can still have a flat rate, but they will be pooled with others who want a flat rate, who might have a more costly load profile. I outline this approach in a paper at http://ei.haas.berkeley.edu/pdf/working_papers/WP229.pdf. By the way, SMUD has run an opt-out pilot for critical-peak pricing that has been very successful (over 90% choose to stay with it). The report on that is linked towards the end of this blog.