Patent ID: 8019697

Claim:
A system for energy optimization, the system comprising: a server; one or more databases in communication with the server; the server is configured for: receiving information collector data from at least one information collector, the information collector data comprising near-real time individualized energy usage data for each of a plurality of customers or customer locations; calculating a cost of service for each of the plurality of customers or customer locations based on their (1) individualized energy usage data, (2) a system generation cost for an energy provider or a locational marginal price of electricity, and (3) characteristics of an electric distribution system used to supply power to each of the plurality of customers or customer locations, the calculating further comprising assigning an individualized relative marginal cost value for each of the customers or customer locations, wherein the relative marginal cost value indicates differences in cost of service for different customers or customer locations, combining the relative marginal cost value with a weighted customer cost, wherein the weighted customer cost indicates an importance of a cost category for individual customers or customer locations; forecasting individualized energy usage for each of the plurality of customers or customer locations; forecasting customer specific cost of service for each of the plurality of customers or customer locations using the calculating results; and optimizing, over a plurality of customers or customer locations, energy use and cost of service using the forecasted individualized energy usage and the forecasted customer specific cost of service.