Design of the Los Angeles Peak-Load Pricing Experiment for Electricity

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


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This four-year experiment will test a variety of new peak-load tariffs with a representative sample of 2200 residential customers drawn from the Department of Water and Power service area in Los Angeles. The statistical design procedures used in the selection of experimental tariffs and in the assignment of individual households to particular plans are described in this report, as well as the rationale for estimating consumer responses from demand curves rather than from analysis of variance models. The tariffs finally selected for field testing are presented, and the basic structure of the analytic model to be used for examining the effects of different electricity rate structures is reviewed. 94 pp. Ref.

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