Chapter | 3 The Ethics of Dynamic Pricing 65 Cost Reduction: Total resource costs would decrease by $143­509 million per year, or 3­6%. Market-based customer costs would decrease by $171­ 579 million per year, or 2­5 %. Economic Efficiency Gain: Dynamic pricing would improve societal welfare by $141­403 million per year. Another study by the Demand Response Research Center informed Califor- nia's decision to deploy advanced metering infrastructure (AMI), a prerequisite for dynamic pricing, to all customers served by the state's investor-owned uti- lities [4]. The California Public Utilities Commission (CPUC) has ruled that dynamic pricing will become the default rate for all non-residential customers once AMI has been rolled out to them and has suggested that it be extended to residential customers once legal restrictions dating back to the energy crisis on residential tariffs have expired [5]. At the national level, the Federal Energy Regulatory Commission (FERC) filed a staff report with the U.S. Congress in June 2009 that quantified the potential impact of dynamic pricing on a state-by-state level [6]. Several deployment scenarios were presented, ranging from a continuation of current trends to one that included universal deployment. Earlier work has shown that even a 5% drop in demand during critical peak hours can be worth $35 billion [7].