Load factor and peak responsibility
Journal Article
·
· Q. Rev. Econ. Bus.; (United States)
OSTI ID:7223366
The ''two-part tariff'' method has been applied by utilities recently to increase system load factors. The system should serve as an economic incentive for customers, but economists have warned that these incentives do not necessarily improve system load factors. The author gathered data on the electricity demands by time-of-day for commercial and industrial users in the Commonwealth Edison system to investigate how improving individual load factors will affect system demands. The pricing system at CE is described and the new statistic, peak factor, is defined. Industrial, commercial, and residential consumption data concerning peak factors and load factors are categorized and analyzed. Evidence indicates that pricing by load factor does yield a pricing structure that is positively related to those prices that would be charged under a peak-load-pricing scheme, and that some customers would benefit under such a scheme. The author feels the following conclusions are justified: (1) if a two-part tariff is to be continued, maximum demand should be calculated during the period of system peak; (2) off-peak rates should be made more attractive to industrial and commercial users; and (3) commercial and residential customers have relatively high peak responsibility and therefore should be charged higher rates; this could be accomplished by some variant of peak-load pricing. (MCW)
- Research Organization:
- Univ. of Illinois, Urbana
- OSTI ID:
- 7223366
- Journal Information:
- Q. Rev. Econ. Bus.; (United States), Journal Name: Q. Rev. Econ. Bus.; (United States) Vol. 17:1; ISSN QREBA
- Country of Publication:
- United States
- Language:
- English
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Related Subjects
29 ENERGY PLANNING, POLICY, AND ECONOMY
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320100 -- Energy Conservation
Consumption
& Utilization-- Buildings
320300 -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
CHARGES
COMMERCIAL SECTOR
CONSUMPTION RATES
DEMAND FACTORS
ELECTRIC POWER
INDUSTRY
LOAD MANAGEMENT
MANAGEMENT
METAL INDUSTRY
PEAK-LOAD PRICING
POWER
PUBLIC UTILITIES
RESIDENTIAL SECTOR
290200 -- Energy Planning & Policy-- Economics & Sociology
296000* -- Energy Planning & Policy-- Electric Power
32 ENERGY CONSERVATION, CONSUMPTION, AND UTILIZATION
320100 -- Energy Conservation
Consumption
& Utilization-- Buildings
320300 -- Energy Conservation
Consumption
& Utilization-- Industrial & Agricultural Processes
CHARGES
COMMERCIAL SECTOR
CONSUMPTION RATES
DEMAND FACTORS
ELECTRIC POWER
INDUSTRY
LOAD MANAGEMENT
MANAGEMENT
METAL INDUSTRY
PEAK-LOAD PRICING
POWER
PUBLIC UTILITIES
RESIDENTIAL SECTOR