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California Customer Load Reductions during the Electricity Crisis: Did They Help to Keep the Lights On?

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Abstract

During summer 2001, Californians reduced electricity usage by 6% and average monthly peak demand by 8%, compared to summer 2000. These load reductions played an important role in avoiding the hundreds of hours of rotating power outages predicted several months prior. Many factors affected electricity use and peak demand in summer 2001, including weather, changes in the State’s economy, and deliberate consumer responses to a variety of stimuli associated with the crisis. This paper assesses the roles played by these contributing factors, with a special focus on the extraordinary efforts made by Californians to reduce electricity consumption. We review the role of media coverage and informational campaigns on public awareness and the impact of rate increases and a variety of publicly funded programs in reducing electricity consumption. We also draw lessons for other regions that may be faced with the prospect of electricity shortages.

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Goldman, C.A., Barbose, G.L. & Eto, J.H. California Customer Load Reductions during the Electricity Crisis: Did They Help to Keep the Lights On?. Journal of Industry, Competition and Trade 2, 113–142 (2002). https://doi.org/10.1023/A:1020883005951

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