Residential response to critical-peak pricing of electricity: California evidence

This paper analyzes data from 483 households that took part in a critical-peak pricing (CPP) experiment between July and September 2004. Using a regression-based approach to quantify hourly baseline electric loads that would have occurred absent CPP events, we show a statistically significant average participant response in each hour. Average peak response estimates are provided for each of twelve experimental strata, by climate zone and building type. Results show that larger users respond more in both absolute and percentage terms, and customers in the coolest climate zone respond most as a percentage of their baseline load. Finally, an analysis involving the two different levels of critical-peak prices – $0.50/kWh and $0.68/kWh – indicates that households did not respond more to the higher CPP rate.