24/7 Hourly Response to Electricity Real-Time Pricing with up to Eight Summers of Experience
This paper provides hourly own and cross price elasticities for industrial customers with up to 8 years of experience on Duke Power optional real-time rates. We include the effects of customer characteristics and temperature conditions. Aggregated results show larger own elasticities than have previous studies, complementarity within the potential peak hours and substitution in the late evening. As customers gain experience with hourly pricing, they show larger load reductions during higher priced hours. As compared to a TOU rate, net benefits are $14,000 per customer per month, approximately 4% of the average customer’s bill, and much greater than metering costs. Copyright Springer Science+Business Media, Inc. 2005
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- 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.
- Robert H. Patrick & Frank A. Wolak, 2001. "Estimating the Customer-Level Demand for Electricity Under Real-Time Market Prices," NBER Working Papers 8213, National Bureau of Economic Research, Inc.
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