(E3 ) Working Papers Series
E3 Working Paper WP-023 Abstract
WP-023: Katrina Jessoe and David Rapson, "Commercial and Industrial Demand Response Under Mandatory Time-of-Use Electricity Pricing" (October 2011) Full Paper
This paper evaluates the impact of a large-scale field deployment of mandatory time-of-use (TOU) pricing on the energy use of commercial and industrial firms. We find (1) little evidence of change in usage or load (2) no change in bills after adjusting for a rate-class discount, and (3) small shifts in bill levels and a slight increase in bill volatility. Economic efficiency was not increased by this policy, as the TOU regime did not generate a reduction in peak load, the intended response. Our results also suggest that concerns about increased electricity expenditure and bill volatility have been overstated.