Abstract
Peak-load pricing has long been advocated for the sale of electricity and other services in which periodic variations in demand are jointly supplied by a common plant of fixed capacity. Time-of-use (TOU) electricity rates have been widely used in Europe for several decades to reflect peak-load cost variations. By contrast, in the USA TOU rates began to receive serious consideration only following the 1973–74 Arab oil embargo.2
We thank Don Negri for contributions to the model presented here. He and Karl Schwenkmeyer provided assistance with the computations. Andrew Buck, Dan Kohler, Michael Ward and Dennis Whitney made very useful comments on an earlier draft. Becky Goodman’s editorial skills improved several drafts of the chapter.
We gratefully acknowledge the support of the Los Angeles Department of Water and Power and especially Michael T. Moore, the original project officer. A grant from the John A. Hartford Foundation is permitting us to extend this analysis into a more national focus.
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© 1983 Jörg Finsinger
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Mitchell, B.M., Acton, J.P. (1983). Electricity Consumption by Time of Use in a Hybrid Demand System. In: Finsinger, J. (eds) Public Sector Economics. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-06504-2_3
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