Regulatory rationing of electricity under a supply curtailment. [Los Angeles city ordinance reducing consumption]
When the Organization of Arab Oil Producing Countries voted in October 1973 to embargo shipments of oil and oil products and to raise prices in general, all uses of energy came under scrutiny. Electric utilities that rely heavily on fuel oil or natural gas for generation were especially vulnerable to serious disruptions in supplies. A variety of policy measures for affecting demand were considered at that time. These can be divided broadly into (1) measures that would cut consumption by raising prices and (2) measures that would cut consumption by voluntary or mandatory rationing. The merits of these alternative approaches have been debated at length by economists and policymakers. Los Angeles chose to meet its problem with a city ordinance requiring customers to reduce their consumption of electricity relative to the preceding year. The discussion focuses on three questions: (1) what was the Los Angeles plan; (2) what were its immediate and longer run effects on electricity consumption; (3) what does this experiment suggest about the relative desirability of such an approach were another fuel or other crisis to occur. (GRA)
- Research Organization:
- RAND Corp., Santa Monica, CA (USA)
- OSTI ID:
- 7223370
- Report Number(s):
- AD-A032234; P-5624
- Country of Publication:
- United States
- Language:
- English
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POLICY AND ECONOMY
CALIFORNIA
ENERGY CONSUMPTION
ELECTRIC POWER
ALLOCATIONS
ENERGY SHORTAGES
ENERGY SUPPLIES
FUELS
PLANNING
PUBLIC UTILITIES
REGULATIONS
URBAN AREAS
NORTH AMERICA
POWER
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WESTERN REGION
296000* - Energy Planning & Policy- Electric Power
293000 - Energy Planning & Policy- Policy
Legislation
& Regulation
292000 - Energy Planning & Policy- Supply
Demand & Forecasting