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Examines the responses of time-of-use (TOU) electricity rates by large industrial and commercial customers in France, England, and Wales. The report analyzes quantitatively the daily and seasonal patterns of electricity use for a sample of customers who have faced TOU rates for 10 to 20 years. Some of the conclusions drawn are: TOU prices have an effect on customers' loads by almost any measure applied; industry-specific patterns of adjustment appear to be consistent with the industrial processes involved; and firms possessing self-generating capability make added adjustments in their daily loads by reducing peak and shoulder period use and increasing off-period electricity consumption. Two major policy implications for the United States are suggested: First, although on average there is clear evidence of response to TOU rates, considerable variability remains from firm to firm and from industry to industry. Second, offering optional rates allows a firm to select the most advantageous rate for the pattern of consumption the firm is willing to achieve.
This study reports an initial analysis of changes in relative peak electricity consumption for almost 4,000 industrial and commercial customers in ten U.S. utilities with time-of-day (TOD) rates now in effect. Relative peak loads declined about one percentage point on average when TOD rates were introduced. A small fraction of customers reduced their peak loads substantially, but most customers (including commercial customers as a whole) have apparently not as yet changed their consumption patterns in response to TOD rates. Average changes in load differ significantly by utility, industry, and year, and those changes are statistically related to the terms of the TOD rates that customers faced. Changes in load, while small in percentage terms, are large enough to justify TOD rates on a benefit/cost evaluation. Welfare gains average over $1,000 per year per customer, against a metering cost of approximately $65 per year when new meters are needed to monitor TOD rates.

Cogeneration

United States. Congress. House. Committee on Science and Technology. Subcommittee on Energy Development and Applications

Published: 1981

Total Pages: 612


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