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This study reports an initial analysis of changes in relative peak electricity consumption for almost 4,000 industrial and commercial customers in ten U.S. utilities with time-of-day (TOD) rates now in effect. Relative peak loads declined about one percentage point on average when TOD rates were introduced. A small fraction of customers reduced their peak loads substantially, but most customers (including commercial customers as a whole) have apparently not as yet changed their consumption patterns in response to TOD rates. Average changes in load differ significantly by utility, industry, and year, and those changes are statistically related to the terms of the TOD rates that customers faced. Changes in load, while small in percentage terms, are large enough to justify TOD rates on a benefit/cost evaluation. Welfare gains average over $1,000 per year per customer, against a metering cost of approximately $65 per year when new meters are needed to monitor TOD rates.

Electric utilities --- Rates --- Time-of-use pricing.

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Electric utilities --- Wind power --- Solar energy --- Rates --- Time-of-use pricing. --- Economic aspects. --- Economic aspects.

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Electric utilities --- Photovoltaic power systems. --- Electric utilities --- Rates --- Rates --- Time-of-use pricing.

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Electric utilities --- Peak load --- Rates --- Time-of-use pricing --- Economic aspects

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Utilities and regulators need to know what, if any, effect time-of-use (TOU) rates will have on electricity loads. The question raises serious methodological challenges because no means of measurement is perfect. The authors explore these difficulties and then apply alternative measures to actual load data drawn from European and United States utility systems. They find wide variability in responsiveness to TOU rates from one industry to another and between utility systems, depending on the method used and the length of time rates have been in effect. They conclude that TOU rates clearly change load shapes but are uncertain whether United States utilities will ever see the degree of response found in European data. Published in [Public] [Utilities Fortnightly], May 22, 1980, following several articles that have taken exception to earlier work by RAND authors on this subject.

Electric utilities --- Peak load --- Rates --- Time-of-use pricing. --- Economic aspects.