A methodology for integrating time-of-use rates in residential demand-side planning
A methodology is developed to use residential demand-side planning to improve energy delivery in a manner which is mutually beneficial to the electric utility and its customers. The methodology examines the utility- and customer-related costs and benefits of altering system loads by introducing major electrical appliances of proven efficiency. Customers' responses to price fluctuations and time-of-use (TOU) rates, as well as attitudes toward various appliances and end-uses themselves, are examined. The primary focus is on an analysis technique to calculate appliance load profile changes which result from TOU rates. Utility planners can design rates which will improve the profitability of an appliance by molding its original load shape into one that is even more desirable for the utility. Nothing similar to this model been developed in any formal manner by a utility. The synthetic load profiles produced should prove to be very useful for cost-effectiveness analyses under time-of-use rates. Utility employees and state regulators have been known to treat TOU residential rates simply as means to save customers money rather than to effect mutually beneficial load shifts. The shifting methodology should help planned address the possibilities of both shaving peaks and increasing demand during off-peak periods. The general trends in electric appliance efficiencies and the availability of novel means of heating and cooking indicate that all-electric homes can be mutually cost-effective for both electric utilities and consumers. A hypothetical but realistic analysis is presented, and sensitivities of utility profits and customer costs to variation in energy usages, energy prices, capital costs, and various economic parameters are performed. Sensitivities to various TOU rates are also analyzed. Drastic TOU price differentials are necessary before either utility profits or customer costs are altered significantly.
- Research Organization:
- California Univ., Irvine, CA (USA)
- OSTI ID:
- 6839991
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
COST BENEFIT ANALYSIS
ELECTRIC UTILITIES
LOAD MANAGEMENT
MANAGEMENT
PLANNING
POWER DEMAND
PRICES
PUBLIC UTILITIES
RESIDENTIAL SECTOR
TIME-OF-USE PRICING