Master of Science / Department of Electrical and Computer Engineering / Anil Pahwa / With the Smart Grid trend setting in, various techniques to make the existing grid smarter are being considered. The price of electricity is one of the major factors, which affects the electric utility as well as the numerous consumers connected to the grid. Therefore deciding the right price of electricity for the time of day would be an important decision to make. Consumers’ response to this change in price will impact peak demand as well as their own annual energy bill. Owning a small wind generator under the Critical Peak Pricing (CPP) and Time of Use (TOU) price-based demand response programs could be a viable option. Economic evaluation of owning a small wind generator under the two pricing schemes, namely Critical Peak Pricing (CPP) and Time of Use (TOU), is the main focus of this research. Analysis shows that adopting either of the pricing schemes will not change the annual energy bill for the consumer. Taking into account the installed cost of the turbine, it may not be significantly economical for a residential homeowner to own a small wind turbine with either of the pricing schemes in effect under the conditions assumed.