The response of large industrial energy consumers to four coincident peak (4CP) transmission charges in the Texas (ERCOT) market
AbstractLarge industrial energy consumers served at transmission voltage in the ERCOT market reduce their consumption up to 4% during intervals in which consumers are charged for transmission services. The response normally lasts two to three hours, since consumers do not know exactly which interval will set one of the four summer coincident peaks (CPs), which are the basis for transmission charges. Thus, the design of transmission prices in ERCOT has been successful in eliciting demand response from that market's largest industrial energy consumers. However, there is no noticeable response during some CPs, reflecting the difficulties in predicting the actual timing of the peak. The response by industrials served at primary voltage to the price signals is insignificant.
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 Utilities Policy.
Volume (Year): 26 (2013)
Issue (Month): C ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/30478
Electricity pricing; Transmission charges; ERCOT; Demand response;
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.:
- Herriges, Joseph A, et al, 1993.
"The Response of Industrial Customers to Electric Rates Based upon Dynamic Marginal Costs,"
The Review of Economics and Statistics,
MIT Press, vol. 75(3), pages 446-54, August.
- Herriges, Joseph A. & Baladi, S. M. & Caves, Douglas W. & Neenan, B. F., 1993. "The Response of Industrial Customers to Electric Rates Based Upon Dynamic Marginal Costs," Staff General Research Papers 1497, Iowa State University, Department of Economics.
- Zarnikau, J. & Landreth, G. & Hallett, I. & Kumbhakar, S.C., 2007. "Industrial customer response to wholesale prices in the restructured Texas electricity market," Energy, Elsevier, vol. 32(9), pages 1715-1723.
- Zarnikau, Jay & Hallett, Ian, 2008. "Aggregate industrial energy consumer response to wholesale prices in the restructured Texas electricity market," Energy Economics, Elsevier, vol. 30(4), pages 1798-1808, July.
- Peter M. Schwarz & Thomas N. Taylor & Matthew Birmingham & Shana L. Dardan, 2002. "Industrial Response to Electricity Real-Time Prices: Short Run and Long Run," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 597-610, October.
- Richard N. Boisvert & Peter Cappers & Charles Goldman & Bernie Neenan & Nicole Hopper, 2007. "Customer Response to RTP in Competitive Markets: A Study of Niagara Mohawk's Standard Offer Tariff," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 53-74.
- Wai Choi & Anindya Sen & Adam White, 2011. "Response of industrial customers to hourly pricing in Ontario’s deregulated electricity market," Journal of Regulatory Economics, Springer, vol. 40(3), pages 303-323, December.
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.