Customer response to day-ahead market hourly pricing: Choices andperformance
Real-time pricing (RTP) has been advocated to address extreme price volatility and market power in electricity markets. This study of Niagara Mohawk Power Corporation's largest customers analyzes their choices and performance in response to day-ahead, default-service RTP.Overall price response is modest: 119 customers are estimated to reduce their peak demand by about 10 percent at high prices. Manufacturing customers are most responsive with a price elasticity of 0.16, followed by government/education customers (0.11), while commercial/retail, healthcare and public works customers are, at present, relatively unresponsive. Within market segments, individual customer response varies significantly.
- Research Organization:
- Ernest Orlando Lawrence Berkeley NationalLaboratory, Berkeley, CA (US)
- Sponsoring Organization:
- USDOE. Office of Electricity Delivery and EnergyReliability. Permitting Siting and Analysis
- DOE Contract Number:
- AC02-05CH11231
- OSTI ID:
- 886065
- Report Number(s):
- LBNL--58114; BnR: TD5211000
- Journal Information:
- Utilities Policy, Journal Name: Utilities Policy Journal Issue: 2 Vol. 14; ISSN 0957-1787; ISSN UTPOEY
- Country of Publication:
- United States
- Language:
- English
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