Purchase Print Copy

 Format Price
Add to Cart Paperback21 pages $20.00

A brief summary of a series of RAND studies on the potential effects of peak-load pricing of electricity in the United States based on a review of European experience with such pricing. Analysis of European utilities clearly demonstrates that peak-load electricity rates can be successfully incorporated into the routine operations of an electric utility, and that many manufacturing industries can adjust their patterns of consumption in a manner that is beneficial to the utility and cost-saving to the customer. The evidence suggests that important savings to U.S. utilities could accompany the introduction of peak-load pricing, estimated at $0.4 to $1.8 billion per year, in fuel costs alone, and possibly expanding to $1.3 to $3.5 billion when greater efficiencies in both operating and capital costs are realized.

This report is part of the RAND paper series. The paper was a product of RAND from 1948 to 2003 that captured speeches, memorials, and derivative research, usually prepared on authors' own time and meant to be the scholarly or scientific contribution of individual authors to their professional fields. Papers were less formal than reports and did not require rigorous peer review.

This document and trademark(s) contained herein are protected by law. This representation of RAND intellectual property is provided for noncommercial use only. Unauthorized posting of this publication online is prohibited; linking directly to this product page is encouraged. Permission is required from RAND to reproduce, or reuse in another form, any of its research documents for commercial purposes. For information on reprint and reuse permissions, please visit www.rand.org/pubs/permissions.

RAND is a nonprofit institution that helps improve policy and decisionmaking through research and analysis. RAND's publications do not necessarily reflect the opinions of its research clients and sponsors.