Projecting Response to Time-of-Day Electricity Rates

by Jan Paul Acton, Rolla Edward Park


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This Note illustrates several methods for projecting the effects of changes in electricity price structure, using tariffs recently introduced in Maryland as examples. For business customers, the effect of time-of-day rates on load shape is projected based on a sample of 6000 U.S. industrial and commercial firms. Projected changes in relative peak load range from to 2 percentage points for business customers in Maryland. For residential customers, the effects of rate flattening and of time-of-day rates are projected based on data from the Los Angeles Rate Experiment. Projected changes in consumption, bills, and economic welfare are small for residences consuming less than 1000 kilowatt hours per month; modest gains in welfare are projected for larger customers.

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