publication . Other literature type . Article . 2007

Wealth Transfers Among Large Customers from Implementing Real-Time Retail Electricity Pricing

Severin Borenstein;
  • Published: 01 Apr 2007
  • Publisher: International Association for Energy Economics (IAEE)
  • Country: United States
Abstract
Adoption of real-time electricity pricingNretail prices that vary hourly to reflect changing wholesale prices removes existing cross-subsidies to those customers that consume disproportionately more when wholesale prices are highest. If their losses are substantial, these customers are likely to oppose RTP initiatives unless there is a supplemental program to offset their loss. Using data on a sample of 1142 large industrial and commercial customers in northern California, I show that RTP adoption would result in significant transfers compared to a flat-rate tariff. When compared to the time-of-use rates (simple peak/offpeak tariffs) that these customers already...
Subjects
free text keywords: General Energy, Economics and Econometrics, Offset (computer science), Economics, Demand patterns, Industrial organization, Electricity, business.industry, business, Secondary sector of the economy, Electricity retailing, Economic impact analysis, Marketing, Volatility (finance), Tariff, Microeconomics
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publication . Other literature type . Article . 2007

Wealth Transfers Among Large Customers from Implementing Real-Time Retail Electricity Pricing

Severin Borenstein;