Critical peak pricing（CPP） is an important measure of demand response in electricity markets. As a flexible tariff mechanism， making a rational CPP implementation strategy and selecting suitable critical days are crucial to its successful implementation. Based on an analysis of the tariff scheme and implementation process of CPP， customers' response to CPP is first described by a price elasticity matrix of demand， and then a hybrid electricity price model is used to forecast the electricity prices. Furthermore， a CPP decision model that considers benefits of both customers and the power supply company is developed for finding the solution with 0-1 integer programming method. Numerical results have proved the effectiveness of the new model， which is beneficial to saving customers' electricity bills， reducing electricity purchase fee of the power supply company， hedging against electricity purchasing risk in the wholesale market， and realizing multi-party win.