Cover: Projected Nationwide Energy and Capacity Savings from Peak-Load Pricing of Electricity in the Industrial Sector.

Projected Nationwide Energy and Capacity Savings from Peak-Load Pricing of Electricity in the Industrial Sector.

by Jan Paul Acton, Bridger M. Mitchell, Willard G. Manning

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Abstract

Estimates the savings in energy and capital costs in the United States that could be achieved by the sale of electricity under peak-load pricing. The authors assume that U.S. manufacturing firms would shift electrical usage to the degree observed in counterpart European industries where peak-load rates have long been in effect. They calculate that the savings in operating costs (e.g., fuel) alone would be between $0.4 and $l.8 billion per year, while the savings in capital and operating costs combined would be between $1.3 and $3.5 billion per year. The report concludes with a discussion of policies that would ease the transition to peak-load pricing. 21 pp. Ref.

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