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Load Shifting Under Voluntary Residential Time-of-Use Rates

Author

Listed:
  • Douglas W. Caves
  • Joseph A. Herriges
  • Kathleen A. Kuester

Abstract

Time-of-use (TOU) pricing has emerged in recent years as a popular rate program, offering utilities both a more efficient pricing mechanism and a tool for load management. Initial experiments with TOUpricing were generally designed to provide evidence on customer response to mandatory TOU rates, while residential TOU rates are currently being applied on a voluntary basis. In this paper evidence is provided on customer response in Pacific Gas and Electric ‘s voluntary TOUrate experiment. Comparing the results to those obtained in earlier mandatory experiments, volunteers are found to have a greater ability to shift usage in response to TOU rates than comparable customers on mandatory rates.

Suggested Citation

  • Douglas W. Caves & Joseph A. Herriges & Kathleen A. Kuester, 1989. "Load Shifting Under Voluntary Residential Time-of-Use Rates," The Energy Journal, , vol. 10(4), pages 83-100, October.
    • Handle: RePEc:sae:enejou:v:10:y:1989:i:4:p:83-100
    DOI: 10.5547/ISSN0195-6574-EJ-Vol10-No4-6
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    References listed on IDEAS

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    1. Parks, Richard W. & Weitzel, David, 1984. "Measuring the consumer welfare effects of time-differentiated electricity prices," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 35-64.
    2. Kohler, Daniel F. & Mitchell, Bridger M., 1984. "Response to residential time-of-use electricity rates : How transferable are the findings?," Journal of Econometrics, Elsevier, vol. 26(1-2), pages 141-177.
    3. Caves, Douglas W. & Christensen, L. R. & Herriges, Joseph A., 1987. "Neoclassical Model of Consumer Demand with Identically Priced Commodities; And An Application to Time of Use Electricity Pricing," Staff General Research Papers Archive 10793, Iowa State University, Department of Economics.
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