Residential implementation of critical-peak pricing ofelectricity

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This paper investigates how critical-peak pricing (CPP)affects households with different usage and income levels, with the goalof informing policy makers who are considering the implementation of CPPtariffs in the residential sector. Using a subset of data from theCalifornia Statewide Pricing Pilot of 2003-2004, average load changeduring summer events, annual percent bill change, and post-experimentsatisfaction ratings are calculated across six customer segments,categorized by historical usage and income levels. Findings show thathigh-use customers respond significantly more in kW reduction than dolow-use customers, while low-use customers save significantly more inpercentage reduction of annual electricity bills than do high-usecustomers results that challenge the strategy ... continued below

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Herter, Karen June 29, 2006.

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Description

This paper investigates how critical-peak pricing (CPP)affects households with different usage and income levels, with the goalof informing policy makers who are considering the implementation of CPPtariffs in the residential sector. Using a subset of data from theCalifornia Statewide Pricing Pilot of 2003-2004, average load changeduring summer events, annual percent bill change, and post-experimentsatisfaction ratings are calculated across six customer segments,categorized by historical usage and income levels. Findings show thathigh-use customers respond significantly more in kW reduction than dolow-use customers, while low-use customers save significantly more inpercentage reduction of annual electricity bills than do high-usecustomers results that challenge the strategy of targeting only high-usecustomers for CPP tariffs. Across income levels, average load and billchanges were statistically indistinguishable, as were satisfaction ratesresults that are compatible with a strategy of full-scale implementationof CPP rates in the residential sector. Finally, the high-use customersearning less than $50,000 annually were the most likely of the groups tosee bill increases about 5 percent saw bill increases of 10 percent ormore suggesting that any residential CPP implementation might considertargeting this customer group for increased energy efficiencyefforts.

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  • Journal Name: Energy Policy; Journal Volume: 35; Journal Issue: 4; Related Information: Journal Publication Date: 04/2007

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  • Report No.: LBNL--60719
  • Grant Number: DE-AC02-05CH11231
  • Office of Scientific & Technical Information Report Number: 920340
  • Archival Resource Key: ark:/67531/metadc897792

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  • June 29, 2006

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  • Sept. 27, 2016, 1:39 a.m.

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  • Dec. 9, 2016, 9:36 p.m.

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Herter, Karen. Residential implementation of critical-peak pricing ofelectricity, article, June 29, 2006; Berkeley, California. (digital.library.unt.edu/ark:/67531/metadc897792/: accessed August 18, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.