Electric Utility Rate Design Study: measuring the potential cost advantages of peak-load pricing. Topic 6 (Phase B)

Technical Report · Thu Dec 15 04:00:00 EST 1977

OSTI ID:6867996

This study had three main objectives: (1) analysis of how the characteristics of specific utilities can affect the potential for system cost reduction through shifts in load patterns caused by peak-load pricing and/or load management; (2) demonstration of use of a proprietary Gordian electric utility model (described in a prior report) in establishing, for an actual utility system, how system costs are affected by specified changes in load patterns; and (3) demonstration of how overall cost/benefit analyses, which weigh system cost savings against the costs of instituting load-management options, can be conducted. Application of the methodology in evaluation of three residential load-management options on the Pennsylvania Power and Light Company (PP and L) system, is demonstrated. Options selected for evaluation were: (a) off-peak storage space heating (mixed system with 63.5 percent storage heating, 36.5 percent resistance heating) with charging during off-peak night hours only; (b) off-peak storage hot water heating with sufficient storage capacity to permit charging during off-peak night hours only; and (c) increasing the level of insulation in new residences from R-11 to R-19 in walls and from R-19 to R-30 in ceilings. Results of cost/benefit analyses showed an attractive return on additional investment in cases of increased insulation and, depending on assumptions, in the case of off-peak hot-water heating as well, but an inadequate return in the case of storage heating. This latter result can be ascribed to the fact that PP and L is a winter-peaking utility in a summer-peaking power pool, and when the utility is considered in the context of the pool, the marginal savings resulting from a reduction of the winter peak are substantially decreased. It must be cautioned that the optimal capital expansion plan and results of the cost/benefit analyses presented are dependent upon the assumptions made as inputs to the model.

• Research Organization: Gordian Associates, Inc., New York (USA); Electric Power Research Inst., Palo Alto, Calif. (USA)
• OSTI ID: 6867996
• Report Number(s): NP-22553
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320100 -- Energy Conservation
Consumption
& Utilization-- Buildings
APPLIANCES
BUILDINGS
CHARGES
COST BENEFIT ANALYSIS
ECONOMICS
ELECTRIC APPLIANCES
ELECTRIC POWER
ELECTRIC UTILITIES
ENERGY CONSERVATION
ENERGY STORAGE
GAS APPLIANCES
HEAT STORAGE
HEATERS
HEATING
HOUSES
LOAD MANAGEMENT
MANAGEMENT
PEAK-LOAD PRICING
POWER
POWER DEMAND
POWER SYSTEMS
PUBLIC UTILITIES
RATE STRUCTURE
RESIDENTIAL BUILDINGS
SPACE HEATING
STORAGE
THERMAL INSULATION
WATER HEATERS