Date of Award
Electric utilities -- Rates -- Peak-load pricing, Electric power consumption -- Forecasting, Public utilities -- Oregon -- Economic aspectsUnited States. Bonneville Power Administration
October 2011 Bonneville Power Administration changed their wholesale electricity demand charge from a coincident to a non-coincident demand charge. This paper seeks to test the effect that this change had on overall electricity peak load on Bonneville. To do this an econometric model was created using data from ten years before the change occurred. This model was then used to estimate monthly peak load amounts between October 2011 and September 2014. These estimates were compared against the real meter data to estimate an effect of the rate change. Based on this model the average monthly peak load reduced by 0.25%. While the average effect was small there was a substantial shifting of peak loads with, for example, June peaks increasing on average by 14% and January peak loads decreasing on average by 8%. Overall, this paper shows that changing to non-coincident demand charges had a small beneficial effect on average peaks and a substantial beneficial effect on winter peaks.
Hunger, Jarek R., "Wholesale Peak Demand Pricing" (2016). University Honors Theses. Paper 345.