Application of the expenditure function in electricity pricing: optimal residential time-of-use rate option
Journal Article
·
· Energy J.; (United States)
This analysis presents the optimal time-of-use (TOU) electricity rates and the standard flat rate. It also proves that social welfare is higher under optimal rates than under mandatory pricing with only one rate schedule. The author develops an index for identifying customer type based on consumption history. Within each market defined by climatic band and appliance ownership, variation in historical use comes largely from differences in income, making past billing a satisfactory way to classify customers. However, the resulting optimization problem is mathematically almost intractable, and offers few insights into the issue of designing an optimal TOU rate option. 26 references.
- Research Organization:
- Pacific Gas and Electricity Co., San Francisco, CA
- OSTI ID:
- 5621094
- Journal Information:
- Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 6:2; ISSN ENJOD
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING, POLICY, AND ECONOMY
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101* -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
ELECTRIC POWER
ELECTRIC UTILITIES
OPTIMIZATION
PEAK-LOAD PRICING
POWER
PRICES
PUBLIC UTILITIES
RATE STRUCTURE
RESIDENTIAL SECTOR
TIME-OF-USE PRICING
296000 -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320101* -- Energy Conservation
Consumption
& Utilization-- Residential Buildings-- (-1987)
320603 -- Energy Conservation
Consumption
& Utilization-- Municipalities & Community Systems-- Public Utilities-- (1980-)
ELECTRIC POWER
ELECTRIC UTILITIES
OPTIMIZATION
PEAK-LOAD PRICING
POWER
PRICES
PUBLIC UTILITIES
RATE STRUCTURE
RESIDENTIAL SECTOR
TIME-OF-USE PRICING