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Time-of-Use Pricing for Electric Power: Implications for the New York Dairy Sector, A Preliminary Analysis

Author

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  • Middagh, Mark C.

Abstract

This paper examines the cost of electric power consumption on New York dairy farms. More specifically, it is a preliminary evaluation of the cost changes that dairy farmers may experience when residential time-of-use electricity rates are implemented by New York State utilities. Using a model developed for Niagara Mohawk Power Corporation, the operating cost of farm electrical equipment is estimated using both flat rate pricing and NMPC's new time-of-use rates, which are now being implemented for their farm and residential customers. Twenty-five "typical" family-operated dairy farms are evaluated with this model. Initial results indicate a cost decrease up to 10 percent as a result of the switch to time-of-use rates. Larger farms will experience a greater percent decrease in electricity costs than smaller farms. Electricity costs for all major end uses are lower with time-of-use rates than with a flat rate. These estimates assume no response in the farmer's schedule or equipment usage. Model refinement will continue.

Suggested Citation

  • Middagh, Mark C., 1991. "Time-of-Use Pricing for Electric Power: Implications for the New York Dairy Sector, A Preliminary Analysis," Staff Papers 121481, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudasp:121481
    DOI: 10.22004/ag.econ.121481
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