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Load Shifting Under Voluntary Residential Time-of-Use Rates

Douglas W. Caves, Joseph A. Herriges, and Kathleen A. Kuester

Year: 1989
Volume: Volume 10
Number: Number 4
DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No4-6
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Time-of-use (TOU) pricing has emerged in recent years as a popular rate program, offering utilities both a more efficient pricing mechanism and a tool for load management. Initial experiments with TOUpricing were generally designed to provide evidence on customer response to mandatory TOU rates, while residential TOU rates are currently being applied on a voluntary basis. In this paper evidence is provided on customer response in Pacific Gas and Electric's voluntary TOUrate experiment. Comparing the results to those obtained in earlier mandatory experiments, volunteers are found to have a greater ability to shift usage in response to TOUrates than comparable customers on mandatory rates.

Household Response to Incentive Payments for Load Shifting: A Japanese Time-of-Day Electricity Pricing Experiment

Isamu Matsukawa, Hiroshi Asano anti Hitoshi Kakimoto

Year: 2000
Volume: Volume21
Number: Number 1
DOI: 10.5547/ISSN0195-6574-EJ-Vol21-No1-3
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We measure the effect of incentive payments on residential time-of-day (TOD) electricity demand in summer, using data from a residential TOD electricity pricing experiment in the Kyushu region of southern Japan. During the experiment, participating households could receive incentive payments if they reduce their peak usage share. Results based on an econometric model indicate that households have shifted their electricity usage from peak to off-peak periods in response to the incentive payment, but the effect of the incentive payment on load shifting was modest.

Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing

Kathleen Spees and Lester Lave

Year: 2008
Volume: Volume 29
Number: Number 2
DOI: 10.5547/ISSN0195-6574-EJ-Vol29-No2-6
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Load Shifting and Real Time Pricing Kathleen Spees* and Lester Lave** In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savings from a change toward real-time pricing (RTP) or time-of-use (TOU) pricing. Surprisingly, neither RTP nor TOU has much effect on average price under plausible short-term consumer responses. Consumer plus producer surplus rises 2.8%-4.4% with RTP and 0.6%-1.0% with TOU. Peak capacity savings are seven times larger with RTP. Peak load drops by 10.4%-17.7% with RTP and only 1.1%-2.4% with TOU. Half of all possible customer savings from load shifting are obtained by shifting only 1.7% of all MWh to another time of day, indicating that only the largest customers need be responsive to get the majority of the short-run savings.

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