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A Residential Demand Charge: Evidence from the Duke Power Time-of-Day Pricing Experiment

Thomas N. Taylor and Peter M. Schwarz

Year: 1986
Volume: Volume 7
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol7-No2-10
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Abstract:
Demand charges account for one-third to one-half of industrial and commercial electricity bills, and yet they have been virtually ignored, both theoretically and practically, as a component of residential tariffs. Our objective here is twofold: (1) to model and test the effects of a time-of-use demand charge on residential consumer behavior and (2) to evaluate, theoretically and empirically, its influence on utility system peak. Among the pragmatic issues are the effects of sustained hot weather on household response and the effects of the charge on demand at time of system peak compared to billing demand.



Cold Hands, Warm Hearth? Climate, Net Takeback, and Household Comfort

Peter M. Schwarz and Thomas N. Taylor

Year: 1995
Volume: Volume16
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol16-No1-3
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Abstract:
Insulation reduces marginal heating cost and may lead to a takeback effect of higher wintertime thermostat settings, with a consequent dilution of energy savings. Alternatively, additional insulation could permit a lower thermostat setting by reducing drafts and radiation while increasing moisture retention, thereby enhancing comfort. This paper evaluates thermostat net takeback, the difference between takeback and enhanced comfort. Evidence supports the existence of both effects, with net takeback at the low end of literature estimates. Net thermostat takeback is on the order of 0.05 degrees F, leading to an energy takeback that ranges from 1-3% of potential energy savings, depending on climate and house size. Other significant determinants of thermostat are heating energy price and the presence of elderly or young occupants.



ENERGY STAR Appliance Market Shares: Do They Respond to Electricity Prices, and Does It Matter?

Peter M. Schwarz, Craig A. Depken, II, Michael W. Herron, and Benjamin J. Correll

Year: 2021
Volume: Volume 42
Number: Number 4
DOI: 10.5547/01956574.42.4.psch
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Abstract:
We address an apparent paradox that the market shares of four ENERGY STAR appliances in the United States do not respond to within-state changes in electricity prices. We resolve the paradox by showing that market shares do respond to between-state variation in electricity prices. We also suggest an economic explanation for the paradox through the timing of appliance purchases. Using the estimation results, we find that the four ENERGY STAR appliances reduce carbon emissions by 1.9 million megawatt-hours per year, equivalent to removing 0.1% of all U.S. vehicles, and that the addition of a $100/ton CO2 price would increase these figures to 2.1 million megawatt-hours and 0.11%.



Compensating Solar Prosumers Using Buy-All, Sell-All as an Alternative to Net Metering and Net Purchasing: Total Use, Rebound, and Cross Subsidization

Peter M. Schwarz, Nathan Duma, and Ercument Camadan

Year: 2023
Volume: Volume 44
Number: Number 1
DOI: 10.5547/01956574.44.1.psch
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Abstract:
Electric utilities are challenging net metering, which compensates owners of residential solar photovoltaic systems by crediting solar generation at the retail rate instead of reflecting the value of solar to the utility. In 2012, Austin Energy was the first US utility to replace net metering with Buy-All, Sell-All, where prosumers purchase all electricity at the retail rate and sell all electricity at the utility's value of solar rate. Using Austin Energy customer data for hot weather months, a load curve comparison of comparably sized houses shows that prosumers have higher consumption than non-solar customers during system peak hours. Regression analysis finds that prosumers use more energy for air conditioning, with a rebound effect of 20%. A simulation shows that under net metering and net purchasing almost 7% of prosumer bills would be paid by non-solar customers while total subsidy would be 18% due to the inclusion of increasing block rates.





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