Residential winter kWh responsiveness under optional time-varying pricing in British Columbia

C. K. Woo, Raymond Li, Alice Shiu, I. Horowitz

Research output: Journal article publicationJournal articleAcademic researchpeer-review

38 Citations (Scopus)

Abstract

A large sample of daily electricity consumption and pricing data are available from a pilot study conducted by BC Hydro in British Columbia (Canada) of its residential customers under optional time-varying pricing and remotely-activated load-control devices for the four winter months of November 2007-February 2008. We use those data to estimate the elasticity of substitution σ, defined as the negative of the percentage change in the peak-to-off-peak kW. h ratio due to a 1% change in the peak-to-off-peak price ratio. Our estimates of σ characterize residential price responsiveness with and without load control during cold-weather months. While the estimates of σ sans load control are highly statistically significant (α=0.01), they are less than 0.07. With load control in place, however, these σ estimates more than triple. Finally, we show that time-varying pricing sans load control causes a peak kW. h reduction of 2.6% at the 2:1 peak-to-off-peak price ratio to 9.2% at the 12:1 peak-to-off-peak price ratio. Load control raises these reduction estimates to 9.2% and 30.7%.
Original languageEnglish
Pages (from-to)288-297
Number of pages10
JournalApplied Energy
Volume108
DOIs
Publication statusPublished - 1 Jan 2013

Keywords

  • British Columbia
  • Optional time-varying pricing
  • Residential price responsiveness
  • Winter peak kWh reduction

ASJC Scopus subject areas

  • Building and Construction
  • Energy(all)
  • Mechanical Engineering
  • Management, Monitoring, Policy and Law

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