Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing

In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savi...

Full description

Saved in:
Bibliographic Details
Published in:The Energy journal (Cambridge, Mass.) Mass.), 2008-04, Vol.29 (2), p.101-121
Main Authors: Spees, Kathleen, Lave, Lester
Format: Article
Language:English
Subjects:
Applied sciences
Capacity
Consumer surplus
Cost reduction
Customer relations
Customers
Economic data
Elasticity of demand
Electric energy
Electric power production
Electric utilities
Electricity
Electricity generation
Energy
Energy consumption
Energy economics
Energy policy
Energy use
Exact sciences and technology
General, economic and professional studies
Market prices
Marketing research
Methodology. Modelling
Price elasticity
Prices and rates
Producer surplus
Studies
Time of day pricing
Wholesale prices
Wholesale trade
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
cited_by cdi_FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653
cites cdi_FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653
container_end_page 121
container_issue 2
container_start_page 101
container_title The Energy journal (Cambridge, Mass.)
container_volume 29
creator Spees, Kathleen
Lave, Lester
description In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savings from a change toward real-time pricing (RTP) or time-of-use (TOU) pricing. Surprisingly, neither RTP nor TOU has much effect on average price under plausible short-term consumer responses. Consumer plus producer surplus rises 2.8%-4.4% with RTP and 0.6%-1.0% with TOU. Peak capacity savings are seven times larger with RTP. Peak load drops by 10.4%-17.7% with RTP and only 1. 1%-2.4% with TOU. Half of all possible customer savings from load shifting are obtained by shifting only 1.7% of all MWh to another time of day, indicating that only the largest customers need be responsive to get the majority of the short-run savings.
doi_str_mv 10.5547/issn0195-6574-ej-vol29-no2-6
format article
fullrecord <record><control><sourceid>gale_proqu</sourceid><recordid>TN_cdi_proquest_journals_222026030</recordid><sourceformat>XML</sourceformat><sourcesystem>PC</sourcesystem><galeid>A177590473</galeid><jstor_id>41323159</jstor_id><sage_id>10.5547_ISSN0195-6574-EJ-Vol29-No2-6</sage_id><sourcerecordid>A177590473</sourcerecordid><originalsourceid>FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653</originalsourceid><addsrcrecordid>eNqNkUtr3DAUhU1podM0P6Fg-lh0oVRvWyWbEPKYME1CJu1WyLLkarClqeQJ7b-vBocpA7OotBD38p1z0T1F8RHBE8Zo9cWl5CESDHBWUWBW4Cn0WAAfMOAvihkSlAIBa_GymO2w18WblFYwH1rVs-JyPqyVHlMZbPlg0jr45J5MuQiqLZ0v72--fZ2K5U9nR-e7Uvk2k6ovH91gyvvodO6-LV5Z1Sdz_PweFd8vLx7Pr8Hi7mp-frYAusJ4BKKhVlnaMMRqiuuaI8QIR1YhSBqKWNtWjYaWYdhyghsGect0LWjbokoQzshR8X7yXcfwa2PSKFdhE30eKTHGEHNIYIY-TFCneiOdt2GMSg8uaXmGqoqJ_HWSKXCA6ow3UfXBG-tye48_OcDn25rB6YOCz3uCzIzm99ipTUpyvnzYZ08nVseQUjRWrqMbVPwjEZTbrLNgebsNUW5DlBc38sc2a3kbsORZ_ul5LSpp1duovHZp55EXg3kelDkxcUl15t_q_nPGu0m7SmOIO2-KCCaICfIXE3TDDA</addsrcrecordid><sourcetype>Aggregation Database</sourcetype><iscdi>true</iscdi><recordtype>article</recordtype><pqid>222026030</pqid></control><display><type>article</type><title>Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing</title><source>EconLit s plnými texty</source><source>EBSCOhost Business Source Ultimate</source><source>JSTOR Archival Journals and Primary Sources Collection</source><source>ABI/INFORM Global</source><source>SAGE:Jisc Collections:SAGE Journals Read and Publish 2023-2024:2025 extension (reading list)</source><creator>Spees, Kathleen ; Lave, Lester</creator><creatorcontrib>Spees, Kathleen ; Lave, Lester</creatorcontrib><description>In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savings from a change toward real-time pricing (RTP) or time-of-use (TOU) pricing. Surprisingly, neither RTP nor TOU has much effect on average price under plausible short-term consumer responses. Consumer plus producer surplus rises 2.8%-4.4% with RTP and 0.6%-1.0% with TOU. Peak capacity savings are seven times larger with RTP. Peak load drops by 10.4%-17.7% with RTP and only 1. 1%-2.4% with TOU. Half of all possible customer savings from load shifting are obtained by shifting only 1.7% of all MWh to another time of day, indicating that only the largest customers need be responsive to get the majority of the short-run savings.</description><identifier>ISSN: 0195-6574</identifier><identifier>EISSN: 1944-9089</identifier><identifier>DOI: 10.5547/issn0195-6574-ej-vol29-no2-6</identifier><identifier>CODEN: ENJODN</identifier><language>eng</language><publisher>Los Angeles, CA: Energy Economics Education Foundation, Inc</publisher><subject>Applied sciences ; Capacity ; Consumer surplus ; Cost reduction ; Customer relations ; Customers ; Economic data ; Elasticity of demand ; Electric energy ; Electric power production ; Electric utilities ; Electricity ; Electricity generation ; Energy ; Energy consumption ; Energy economics ; Energy policy ; Energy use ; Exact sciences and technology ; General, economic and professional studies ; Market prices ; Marketing research ; Methodology. Modelling ; Price elasticity ; Prices and rates ; Producer surplus ; Studies ; Time of day pricing ; Wholesale prices ; Wholesale trade</subject><ispartof>The Energy journal (Cambridge, Mass.), 2008-04, Vol.29 (2), p.101-121</ispartof><rights>Copyright © 2008 International Association for Energy Economics</rights><rights>The Author(s)</rights><rights>2008 INIST-CNRS</rights><rights>COPYRIGHT 2008 International Association for Energy Economics</rights><rights>COPYRIGHT 2008 Sage Publications Ltd. (UK)</rights><rights>Copyright International Association for Energy Economics 2008</rights><lds50>peer_reviewed</lds50><woscitedreferencessubscribed>false</woscitedreferencessubscribed><citedby>FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653</citedby><cites>FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653</cites></display><links><openurl>$$Topenurl_article</openurl><openurlfulltext>$$Topenurlfull_article</openurlfulltext><thumbnail>$$Tsyndetics_thumb_exl</thumbnail><linktopdf>$$Uhttps://www.proquest.com/docview/222026030/fulltextPDF?pq-origsite=primo$$EPDF$$P50$$Gproquest$$H</linktopdf><linktohtml>$$Uhttps://www.proquest.com/docview/222026030?pq-origsite=primo$$EHTML$$P50$$Gproquest$$H</linktohtml><link.rule.ids>314,776,780,11667,27901,27902,36037,44339,58213,58446,74638</link.rule.ids><backlink>$$Uhttp://pascal-francis.inist.fr/vibad/index.php?action=getRecordDetail&amp;idt=20226904$$DView record in Pascal Francis$$Hfree_for_read</backlink></links><search><creatorcontrib>Spees, Kathleen</creatorcontrib><creatorcontrib>Lave, Lester</creatorcontrib><title>Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing</title><title>The Energy journal (Cambridge, Mass.)</title><description>In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savings from a change toward real-time pricing (RTP) or time-of-use (TOU) pricing. Surprisingly, neither RTP nor TOU has much effect on average price under plausible short-term consumer responses. Consumer plus producer surplus rises 2.8%-4.4% with RTP and 0.6%-1.0% with TOU. Peak capacity savings are seven times larger with RTP. Peak load drops by 10.4%-17.7% with RTP and only 1. 1%-2.4% with TOU. Half of all possible customer savings from load shifting are obtained by shifting only 1.7% of all MWh to another time of day, indicating that only the largest customers need be responsive to get the majority of the short-run savings.</description><subject>Applied sciences</subject><subject>Capacity</subject><subject>Consumer surplus</subject><subject>Cost reduction</subject><subject>Customer relations</subject><subject>Customers</subject><subject>Economic data</subject><subject>Elasticity of demand</subject><subject>Electric energy</subject><subject>Electric power production</subject><subject>Electric utilities</subject><subject>Electricity</subject><subject>Electricity generation</subject><subject>Energy</subject><subject>Energy consumption</subject><subject>Energy economics</subject><subject>Energy policy</subject><subject>Energy use</subject><subject>Exact sciences and technology</subject><subject>General, economic and professional studies</subject><subject>Market prices</subject><subject>Marketing research</subject><subject>Methodology. Modelling</subject><subject>Price elasticity</subject><subject>Prices and rates</subject><subject>Producer surplus</subject><subject>Studies</subject><subject>Time of day pricing</subject><subject>Wholesale prices</subject><subject>Wholesale trade</subject><issn>0195-6574</issn><issn>1944-9089</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2008</creationdate><recordtype>article</recordtype><sourceid>M0C</sourceid><recordid>eNqNkUtr3DAUhU1podM0P6Fg-lh0oVRvWyWbEPKYME1CJu1WyLLkarClqeQJ7b-vBocpA7OotBD38p1z0T1F8RHBE8Zo9cWl5CESDHBWUWBW4Cn0WAAfMOAvihkSlAIBa_GymO2w18WblFYwH1rVs-JyPqyVHlMZbPlg0jr45J5MuQiqLZ0v72--fZ2K5U9nR-e7Uvk2k6ovH91gyvvodO6-LV5Z1Sdz_PweFd8vLx7Pr8Hi7mp-frYAusJ4BKKhVlnaMMRqiuuaI8QIR1YhSBqKWNtWjYaWYdhyghsGect0LWjbokoQzshR8X7yXcfwa2PSKFdhE30eKTHGEHNIYIY-TFCneiOdt2GMSg8uaXmGqoqJ_HWSKXCA6ow3UfXBG-tye48_OcDn25rB6YOCz3uCzIzm99ipTUpyvnzYZ08nVseQUjRWrqMbVPwjEZTbrLNgebsNUW5DlBc38sc2a3kbsORZ_ul5LSpp1duovHZp55EXg3kelDkxcUl15t_q_nPGu0m7SmOIO2-KCCaICfIXE3TDDA</recordid><startdate>200804</startdate><enddate>200804</enddate><creator>Spees, Kathleen</creator><creator>Lave, Lester</creator><general>Energy Economics Education Foundation, Inc</general><general>SAGE Publications</general><general>International Association for Energy Economics</general><general>Sage Publications Ltd. (UK)</general><scope>IQODW</scope><scope>AAYXX</scope><scope>CITATION</scope><scope>ISR</scope><scope>3V.</scope><scope>7SP</scope><scope>7TB</scope><scope>7WY</scope><scope>7WZ</scope><scope>7XB</scope><scope>87Z</scope><scope>88F</scope><scope>88I</scope><scope>8AF</scope><scope>8FD</scope><scope>8FE</scope><scope>8FG</scope><scope>8FK</scope><scope>8FL</scope><scope>8G5</scope><scope>ABJCF</scope><scope>ABUWG</scope><scope>AEUYN</scope><scope>AFKRA</scope><scope>ATCPS</scope><scope>AZQEC</scope><scope>BENPR</scope><scope>BEZIV</scope><scope>BGLVJ</scope><scope>BHPHI</scope><scope>BKSAR</scope><scope>CCPQU</scope><scope>DWQXO</scope><scope>FR3</scope><scope>FRNLG</scope><scope>F~G</scope><scope>GNUQQ</scope><scope>GUQSH</scope><scope>HCIFZ</scope><scope>K60</scope><scope>K6~</scope><scope>KR7</scope><scope>L.-</scope><scope>L6V</scope><scope>L7M</scope><scope>M0C</scope><scope>M1Q</scope><scope>M2O</scope><scope>M2P</scope><scope>M7S</scope><scope>MBDVC</scope><scope>PATMY</scope><scope>PCBAR</scope><scope>PQBIZ</scope><scope>PQBZA</scope><scope>PQEST</scope><scope>PQQKQ</scope><scope>PQUKI</scope><scope>PRINS</scope><scope>PTHSS</scope><scope>PYCSY</scope><scope>Q9U</scope><scope>S0X</scope></search><sort><creationdate>200804</creationdate><title>Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing</title><author>Spees, Kathleen ; Lave, Lester</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2008</creationdate><topic>Applied sciences</topic><topic>Capacity</topic><topic>Consumer surplus</topic><topic>Cost reduction</topic><topic>Customer relations</topic><topic>Customers</topic><topic>Economic data</topic><topic>Elasticity of demand</topic><topic>Electric energy</topic><topic>Electric power production</topic><topic>Electric utilities</topic><topic>Electricity</topic><topic>Electricity generation</topic><topic>Energy</topic><topic>Energy consumption</topic><topic>Energy economics</topic><topic>Energy policy</topic><topic>Energy use</topic><topic>Exact sciences and technology</topic><topic>General, economic and professional studies</topic><topic>Market prices</topic><topic>Marketing research</topic><topic>Methodology. Modelling</topic><topic>Price elasticity</topic><topic>Prices and rates</topic><topic>Producer surplus</topic><topic>Studies</topic><topic>Time of day pricing</topic><topic>Wholesale prices</topic><topic>Wholesale trade</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>Spees, Kathleen</creatorcontrib><creatorcontrib>Lave, Lester</creatorcontrib><collection>Pascal-Francis</collection><collection>CrossRef</collection><collection>Gale In Context: Science</collection><collection>ProQuest Central (Corporate)</collection><collection>Electronics &amp; Communications Abstracts</collection><collection>Mechanical &amp; Transportation Engineering Abstracts</collection><collection>ABI/INFORM Collection</collection><collection>ABI/INFORM Global (PDF only)</collection><collection>ProQuest Central (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection</collection><collection>Military Database (Alumni Edition)</collection><collection>Science Database (Alumni Edition)</collection><collection>STEM Database</collection><collection>Technology Research Database</collection><collection>ProQuest SciTech Collection</collection><collection>ProQuest Technology Collection</collection><collection>ProQuest Central (Alumni) (purchase pre-March 2016)</collection><collection>ABI/INFORM Collection (Alumni Edition)</collection><collection>Research Library (Alumni Edition)</collection><collection>Materials Science &amp; Engineering Collection</collection><collection>ProQuest Central (Alumni)</collection><collection>ProQuest One Sustainability</collection><collection>ProQuest Central</collection><collection>Agricultural &amp; Environmental Science Collection</collection><collection>ProQuest Central Essentials</collection><collection>ProQuest Central</collection><collection>Business Premium Collection</collection><collection>Technology Collection</collection><collection>Natural Science Collection</collection><collection>Earth, Atmospheric &amp; Aquatic Science Collection</collection><collection>ProQuest One Community College</collection><collection>ProQuest Central</collection><collection>Engineering Research Database</collection><collection>Business Premium Collection (Alumni)</collection><collection>ABI/INFORM Global (Corporate)</collection><collection>ProQuest Central Student</collection><collection>Research Library Prep</collection><collection>SciTech Premium Collection</collection><collection>ProQuest Business Collection (Alumni Edition)</collection><collection>ProQuest Business Collection</collection><collection>Civil Engineering Abstracts</collection><collection>ABI/INFORM Professional Advanced</collection><collection>ProQuest Engineering Collection</collection><collection>Advanced Technologies Database with Aerospace</collection><collection>ABI/INFORM Global</collection><collection>Military Database</collection><collection>Research Library</collection><collection>Science Database</collection><collection>Engineering Database</collection><collection>Research Library (Corporate)</collection><collection>Environmental Science Database</collection><collection>Earth, Atmospheric &amp; Aquatic Science Database</collection><collection>ProQuest One Business</collection><collection>ProQuest One Business (Alumni)</collection><collection>ProQuest One Academic Eastern Edition (DO NOT USE)</collection><collection>ProQuest One Academic</collection><collection>ProQuest One Academic UKI Edition</collection><collection>ProQuest Central China</collection><collection>Engineering Collection</collection><collection>Environmental Science Collection</collection><collection>ProQuest Central Basic</collection><collection>SIRS Editorial</collection><jtitle>The Energy journal (Cambridge, Mass.)</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>Spees, Kathleen</au><au>Lave, Lester</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing</atitle><jtitle>The Energy journal (Cambridge, Mass.)</jtitle><date>2008-04</date><risdate>2008</risdate><volume>29</volume><issue>2</issue><spage>101</spage><epage>121</epage><pages>101-121</pages><issn>0195-6574</issn><eissn>1944-9089</eissn><coden>ENJODN</coden><abstract>In PJM, 15% of electric generation capacity ran less than 96 hours, 1.1% of the time, over 2006. If retail prices reflected hourly wholesale market prices, customers would shift consumption away from peak hours and installed capacity could drop. We use PJM data to estimate consumer and producer savings from a change toward real-time pricing (RTP) or time-of-use (TOU) pricing. Surprisingly, neither RTP nor TOU has much effect on average price under plausible short-term consumer responses. Consumer plus producer surplus rises 2.8%-4.4% with RTP and 0.6%-1.0% with TOU. Peak capacity savings are seven times larger with RTP. Peak load drops by 10.4%-17.7% with RTP and only 1. 1%-2.4% with TOU. Half of all possible customer savings from load shifting are obtained by shifting only 1.7% of all MWh to another time of day, indicating that only the largest customers need be responsive to get the majority of the short-run savings.</abstract><cop>Los Angeles, CA</cop><pub>Energy Economics Education Foundation, Inc</pub><doi>10.5547/issn0195-6574-ej-vol29-no2-6</doi><tpages>21</tpages></addata></record>
fulltext fulltext
identifier ISSN: 0195-6574
ispartof The Energy journal (Cambridge, Mass.), 2008-04, Vol.29 (2), p.101-121
issn 0195-6574
1944-9089
language eng
recordid cdi_proquest_journals_222026030
source EconLit s plnými texty; EBSCOhost Business Source Ultimate; JSTOR Archival Journals and Primary Sources Collection; ABI/INFORM Global; SAGE:Jisc Collections:SAGE Journals Read and Publish 2023-2024:2025 extension (reading list)
subjects Applied sciences
Capacity
Consumer surplus
Cost reduction
Customer relations
Customers
Economic data
Elasticity of demand
Electric energy
Electric power production
Electric utilities
Electricity
Electricity generation
Energy
Energy consumption
Energy economics
Energy policy
Energy use
Exact sciences and technology
General, economic and professional studies
Market prices
Marketing research
Methodology. Modelling
Price elasticity
Prices and rates
Producer surplus
Studies
Time of day pricing
Wholesale prices
Wholesale trade
title Impacts of Responsive Load in PJM: Load Shifting and Real Time Pricing
url http://sfxeu10.hosted.exlibrisgroup.com/loughborough?ctx_ver=Z39.88-2004&ctx_enc=info:ofi/enc:UTF-8&ctx_tim=2025-02-06T16%3A25%3A38IST&url_ver=Z39.88-2004&url_ctx_fmt=infofi/fmt:kev:mtx:ctx&rfr_id=info:sid/primo.exlibrisgroup.com:primo3-Article-gale_proqu&rft_val_fmt=info:ofi/fmt:kev:mtx:journal&rft.genre=article&rft.atitle=Impacts%20of%20Responsive%20Load%20in%20PJM:%20Load%20Shifting%20and%20Real%20Time%20Pricing&rft.jtitle=The%20Energy%20journal%20(Cambridge,%20Mass.)&rft.au=Spees,%20Kathleen&rft.date=2008-04&rft.volume=29&rft.issue=2&rft.spage=101&rft.epage=121&rft.pages=101-121&rft.issn=0195-6574&rft.eissn=1944-9089&rft.coden=ENJODN&rft_id=info:doi/10.5547/issn0195-6574-ej-vol29-no2-6&rft_dat=%3Cgale_proqu%3EA177590473%3C/gale_proqu%3E%3Cgrp_id%3Ecdi_FETCH-LOGICAL-c722t-9b4faf4b515842886115361fa103b415dd7bc0f520d632b506d5c894dd1793653%3C/grp_id%3E%3Coa%3E%3C/oa%3E%3Curl%3E%3C/url%3E&rft_id=info:oai/&rft_pqid=222026030&rft_id=info:pmid/&rft_galeid=A177590473&rft_jstor_id=41323159&rft_sage_id=10.5547_ISSN0195-6574-EJ-Vol29-No2-6&rfr_iscdi=true