Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1000448 | Utilities Policy | 2006 | 9 Pages |
Abstract
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% 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.
Keywords
Related Topics
Physical Sciences and Engineering
Energy
Energy (General)
Authors
Nicole Hopper, Charles Goldman, Ranjit Bharvirkar, Bernie Neenan,