Optional time-of-use prices for electricity: Analysis of PG&E`s experimental TOU rates. Final report
We examine customers` time-of-use (TOU) demand for electricity and their choice between standard and TOU rate schedules. We specify an econometric model in which the customer`s demand curves determine the customer`s choice of rate schedule. We estimate the model on data from Pacific Gas & Electric Company`s experiment with optional TOU prices in the residential sector. With the model, we compare the TOU consumption and price elasticities of customers who chose TOU rates with those who chose standard rates. We also estimate the impact of the TOU rates on the utility`s revenues and costs. The analysis suggests that the TOU rates offered under PG&E`s experiment decreased PG&E`s profits and hence contributed to higher general rate levels. The model can be used, however, to design optional TOU rates that increase profits and lower general rate levels.
- Research Organization:
- Lawrence Berkeley National Lab. (LBNL), Berkeley, CA (United States)
- Sponsoring Organization:
- California Inst. for Energy Efficiency, Berkeley, CA (United States)
- DOE Contract Number:
- AC03-76SF00098
- OSTI ID:
- 10179948
- Report Number(s):
- LBL-32670; ON: DE93001592
- Resource Relation:
- Other Information: PBD: Jul 1992
- Country of Publication:
- United States
- Language:
- English
Similar Records
Demand for electricity of small nonresidential customers under time-of-use (TOU) pricing
Long Island Smart Metering Pilot Project