Now that California has AMI, what can the state do with it?
AbstractRecognizing the lack of retail-demand response, a state regulator, such as the California Public Utilities Commission (CPUC), seeks tariff proposals that transmit wholesale price signals to a local distribution company's (LDC) retail customers. To enable these proposals, the CPUC has authorized funding for advanced metering infrastructure (AMI) for two investor-owned LDCs. Assuming regulatory approval of the third LDC's application, the state's US$4.28 billion AMI investment will aid new rate designs for 11.3 million electricity customers. Now that California has AMI, what can the state do with it? With AMI in hand, an LDC can implement service options that can further the state's energy initiatives, ranging from resource adequacy requirement (RAR) to greenhouse gas (GHG) emissions reduction. These options can efficiently allocate limited capacity based on each customer's willingness to pay, without the unnecessary distinction between price rationing and reliability differentiation. They can be Pareto superior, welfare dominating the default tariffs that apply to these customers. A case in point is the generalized demand subscription service (GDSS) option proposed in this paper. However, it is unclear whether the option will find wide customer acceptance, without an LDC's intensive customer education and marketing efforts.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 36 (2008)
Issue (Month): 4 (April)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Seeto, Dewey & Woo, C. K. & Horowitz, Ira, 1997. "Time-of-use rates vs. Hopkinson tariffs redux: An analysis of the choice of rate structures in a regulated electricity distribution company," Energy Economics, Elsevier, vol. 19(2), pages 169-185, May.
- Chi-Keung Woo & Orans, Ren & Horii, Brian & Peter Chow, 1995. "Pareto-superior time-of-use rate option for industrial firms," Economics Letters, Elsevier, vol. 49(3), pages 267-272, September.
- Woo, Chi-Keung & Karimov, Rouslan I. & Horowitz, Ira, 2004. "Managing electricity procurement cost and risk by a local distribution company," Energy Policy, Elsevier, vol. 32(5), pages 635-645, March.
- Peter Cramton & Steven Stoft, 2005.
"A Capacity Market that Makes Sense,"
Papers of Peter Cramton
05licap, University of Maryland, Department of Economics - Peter Cramton, revised 2005.
- Chao, Hung-po & Wilson, Robert, 1987. "Priority Service: Pricing, Investment, and Market Organization," American Economic Review, American Economic Association, vol. 77(5), pages 899-916, December.
- Paul L. Joskow, 2003.
"The Difficult Transition to Competitive Electricity Markets in the U.S,"
0308, Massachusetts Institute of Technology, Center for Energy and Environmental Policy Research.
- Joskow, P.L., 2003. "The Difficult Transition to Competitive Electricity Markets in the U.S," Cambridge Working Papers in Economics 0328, Faculty of Economics, University of Cambridge.
- Joskow, Paul L., 2003. "The Difficult Transition to Competitive Electricity Markets in the U.S," Working paper 207, Regulation2point0.
- Hartman, Raymond S & Doane, Michael J & Woo, Chi-Keung, 1991. "Consumer Rationality and the Status Quo," The Quarterly Journal of Economics, MIT Press, vol. 106(1), pages 141-62, February.
- Jean-Jacques Laffont, 1988. "Fundamentals of Public Economics," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262121271, January.
- Woo, Chi-Keung & Lloyd, Debra & Tishler, Asher, 2003. "Electricity market reform failures: UK, Norway, Alberta and California," Energy Policy, Elsevier, vol. 31(11), pages 1103-1115, September.
- Spulber, Daniel F, 1992. "Optimal Nonlinear Pricing and Contingent Contracts," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 33(4), pages 747-72, November.
- Mackie-mason, Jeffrey K., 1990. "Optional time-of-use pricing can be pareto superior or pareto inferior," Economics Letters, Elsevier, vol. 33(4), pages 363-367, August.
- Woo, Chi-Keung & Horowitz, Ira & Martin, Jennifer, 1998. "Reliability Differentiation of Electricity Transmission," Journal of Regulatory Economics, Springer, vol. 13(3), pages 277-92, May.
- Jurewitz, John L., 2002. "California's Electricity Debacle: A Guided Tour," The Electricity Journal, Elsevier, vol. 15(4), pages 10-29, May.
- Catherine D. Wolfram, 1999. "Measuring Duopoly Power in the British Electricity Spot Market," American Economic Review, American Economic Association, vol. 89(4), pages 805-826, September.
- Herter, Karen, 2007. "Residential implementation of critical-peak pricing of electricity," Energy Policy, Elsevier, vol. 35(4), pages 2121-2130, April.
- Robert Wilson, 2002. "Architecture of Power Markets," Econometrica, Econometric Society, vol. 70(4), pages 1299-1340, July.
- Woo, C.-K. & Lloyd, Debra & Clayton, William, 2006. "Did a local distribution company procure prudently during the California electricity crisis?," Energy Policy, Elsevier, vol. 34(16), pages 2552-2565, November.
- Severin Borenstein & James B. Bushnell & Frank A. Wolak, 2002. "Measuring Market Inefficiencies in California's Restructured Wholesale Electricity Market," American Economic Review, American Economic Association, vol. 92(5), pages 1376-1405, December.
- Woo, Chi-Keung, 1988. "Optimal electricity rates and consumption externality," Resources and Energy, Elsevier, vol. 10(4), pages 277-292, December.
- Chao, Hung-Po & Wilson, Robert, 2002. "Multi-dimensional Procurement Auctions for Power Reserves: Robust Incentive-Compatible Scoring and Settlement Rules," Journal of Regulatory Economics, Springer, vol. 22(2), pages 161-83, September.
- Woo, Chi-Keung, 1990. "Efficient Electricity Pricing with Self-Rationing," Journal of Regulatory Economics, Springer, vol. 2(1), pages 69-81, March.
- Takanori Ida & Kayo Murakami & Makoto Tanaka, 2012. "Keys to Smart Home Diffusion: A Stated Preference Analysis of Smart Meters, Photovoltaic Generation, and Electric/Hybrid Vehicles," Discussion papers e-11-011, Graduate School of Economics Project Center, Kyoto University.
- Pepermans, Guido, 2010.
"The Value of Continuous Power Supply for Flemish Households,"
2010/24, Hogeschool-Universiteit Brussel, Faculteit Economie en Management.
- Pepermans, Guido, 2011. "The value of continuous power supply for Flemish households," Energy Policy, Elsevier, vol. 39(12), pages 7853-7864.
- Woo, C.K. & Li, R. & Shiu, A. & Horowitz, I., 2013. "Residential winter kWh responsiveness under optional time-varying pricing in British Columbia," Applied Energy, Elsevier, vol. 108(C), pages 288-297.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.