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Evaluation of evolving residential electricity tariffs
Panel: 8. Dynamics of consumption
This is a peer-reviewed paper.
Authors:
Judy Lai, Lawrence Berkeley National Laboratory, USA
Nicholas DeForest, Lawrence Berkeley National Laboratory, USA
Sila Kiliccote, Lawrence Berkeley National Laboratory, USA
Michael Stadler, Lawrence Berkeley National Laboratory, USA
Chris Marnay, Lawrence Berkeley National Laboratory, USA
Jon Donadee, Lawrence Berkeley National Laboratory, USA
Abstract
Residential customers in California’s Pacific Gas and Electric (PG&E) territory have seen several electricity rate structure changes in the past decade. A relatively simple two-tiered pricing system (charges by usage under/over baseline for the home’s climate zone) was replaced in the summer of 2001 by a more complicated five-tiered system (usage below baseline and up to 30%, 100%, 200%, and 300%+ over baseline). In 2009, PG&E began the process of upgrading its residential customers to Smart Meters and laying the groundwork for time of use pricing, due to start in 2011. This paper examines the history of the tiered pricing system, discusses the problems the utility encountered with its Smart Meter roll out, and evaluates the proposed dynamic pricing incentive structures. Scenario analyses of example PG&E customer bills will also be presented. What would these residential customers pay if they were still operating under a tiered structure, and/or if they participated in peak hour reductions?
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Panels of
1. Policies and programmes to drive transformation
2. Current energy efficiency policies: On stage and backstage
3. Energy use in industry: The road from policy to action
4. Transport and mobility: How to deliver energy efficiency
5. Saving energy in buildings: The time to act is now