Response to Time-of-Day Electricity Rates by Large Business Customers

Initial Analysis of Data from Ten U.S. Utilities

by Rolla Edward Park, Jan Paul Acton

Download

Download eBook for Free

FormatFile SizeNotes
PDF file 3.3 MB

Use Adobe Acrobat Reader version 10 or higher for the best experience.

Purchase

Purchase Print Copy

 FormatList Price Price
Add to Cart Paperback86 pages $25.00 $20.00 20% Web Discount

This study reports an initial analysis of changes in relative peak electricity consumption for almost 4,000 industrial and commercial customers in ten U.S. utilities with time-of-day (TOD) rates now in effect. Relative peak loads declined about one percentage point on average when TOD rates were introduced. A small fraction of customers reduced their peak loads substantially, but most customers (including commercial customers as a whole) have apparently not as yet changed their consumption patterns in response to TOD rates. Average changes in load differ significantly by utility, industry, and year, and those changes are statistically related to the terms of the TOD rates that customers faced. Changes in load, while small in percentage terms, are large enough to justify TOD rates on a benefit/cost evaluation. Welfare gains average over $1,000 per year per customer, against a metering cost of approximately $65 per year when new meters are needed to monitor TOD rates.

This report is part of the RAND Corporation report series. The report was a product of the RAND Corporation from 1948 to 1993 that represented the principal publication documenting and transmitting RAND's major research findings and final research.

Permission is given to duplicate this electronic document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND PDFs to a non-RAND Web site is prohibited. RAND PDFs are protected under copyright law. For information on reprint and linking permissions, please visit the RAND Permissions page.

The RAND Corporation 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.