Demand for electricity of small nonresidential customers under time-of-use (TOU) pricing

Journal Article · Tue Oct 01 04:00:00 EDT 1985 · Energy J.; (United States)

DOI:https://doi.org/10.5547/ISSN0195-6574-EJ-Vol6-No4-9· OSTI ID:5991428

Woo, C K

This paper estimates the short-run class price responsiveness of Pacific Gas and Electric Company's small nonresidential customers to TOU pricing. These results represent the first econometric evidence on how small nonresidential customers react to TOU pricing. The model formulation and testing procedure are given in one section. The following section describes an ongoing nonresidential TOU experiment with four relative TOU price ratios conducted by PGandE. This is a stratified random sample of 560 customers with monthly billing demand of less than 500 KW. A subsequent section discusses the results. The section entitled Applications predicts the effects of a move from flat to TOU pricing on energy sales, kilowatt demand, and revenue. Since the price responsiveness estimates are small, these effects are small as well. The concluding section argues that in view of the small short-run price responsiveness revealed by the experimental data collected from small nonresidential users, the Generalized Leontief representation is more suitable than the translog function for analyzing electricity demand under TOU pricing. 15 references, 4 figures, 4 tables.

• Research Organization: Pacific Gas and Electricity Co., San Francisco, CA
• OSTI ID: 5991428
• Journal Information: Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 6:4; ISSN ENJOD
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290100 -- Energy Planning & Policy-- Energy Analysis & Modeling
290200 -- Energy Planning & Policy-- Economics & Sociology
292000 -- Energy Planning & Policy-- Supply
Demand & Forecasting
296000* -- Energy Planning & Policy-- Electric Power
CALIFORNIA
COMMERCIAL SECTOR
COMPARATIVE EVALUATIONS
DATA
DEMAND
ECONOMETRICS
ECONOMIC IMPACT
ECONOMICS
ELECTRIC POWER
ENERGY CONSUMPTION
ENERGY DEMAND
ENERGY MODELS
FEDERAL REGION IX
INDUSTRY
INFORMATION
MATHEMATICAL MODELS
NORTH AMERICA
POWER
PRICES
TIME-OF-USE PRICING
USA