Load response: New, or Déjà Vu?

Electricity Journal

Volumn 14, Issue 4, 2001, Pages 73-79

  Nichols, David ^a   Stutz, John ^b  

^a TELLUS INSTITUTE   (United States)

^b Tellus

Author keywords

[No Author keywords available]

Indexed keywords

'CURRENT; DEMAND-SIDE; LOAD REDUCTION; LOAD RESPONSE; SENSITIVE LOADS;

ENERGY EFFICIENCY;

EID: 0007066326     PISSN: 10406190     EISSN: None     Source Type: Journal    
DOI: 10.1016/S1040-6190(01)00199-3     Document Type: Article

References (15)

1. For example, the Pennsylvania-New Jersey-Maryland Market Monitoring Unit's analysis of the first year of market-based supply bids documented "the sensitivity of the market price to relatively small changes in demand." PJM Interconnection State of the Market Report 1999, June 2000, at 29, http://www.pjm.com/market_monitoring (April 25, 2001).
2. Rich Ferguson, The Value of Energy Efficiency in Competitive Power Markets, CLEAN POWER J., Summer 1999.
3. Most recently, William B. Marcus and Greg Ruszovan, Middle Atlantic States Cost Curve Analysis, for the National Association of Energy Service Companies and the Pace Law School Energy Project, Feb. 2001. Marcus also observes that the price benefit of load response will decline over a period of several years if it simply slows the rate of investment in new generating plants, leading to countervailing upward price pressure.
4. Eric Hirst and Brendan Kirby, Retail Load Participation in Competitive Wholesale Electricity Markets, for the Edison Electric Institute and the Project for a Sustainable FERC Energy Policy, Jan. 2001.
5. See Richard A. Rosen, Freyr Sverrisson, and John Stutz, Can Electric Utility Restructuring Meet the Challenges It Has Created?, Tellus Institute, Nov. 2000, especially section 9.2. http://www.tellus.org/general/online_pubs.
6. This phenomenon was explored by Kellogg L. Warner, Henry Y. Yoshimura, and Philip Marston, Whatever Happened to Efficient Price Signals?, ELEC. J., April 1999, at 40-48.
7. Beginning in 1977, Oak Ridge National Laboratory published and updated a Survey of Load Management and Energy Conservation Projects (mostly comprised of the former) which documented the extent and scope of this activity.
8. Steve Rosenstock, Survey of Load Management, Edison Electric Institute, 2000.
9. PJM Load Response Program, Jan. 2001 (draft), http://www.pjm.com/committees/user_group/distributed_ generation (April 25, 2001).
10. California Independent System Operator Corp., Request for Bids to Provide Demand Relief for Summer 2001, Dec. 4, 2000,
11. and Time Line for Demand Response Programs, April 16, 2001, http://www.caiso.com/clientserv/load (April 25, 2001).
12. California is indirectly weighting these benefits, in that an administrative law judge of the Public Utilities Commission in 2000 recommended increasing the marginal costs used to screen DSM cost-effectiveness, based on Bill Marcus' documentation of market price benefits, Ruling A99-09-049 (Oct. 25, 2000).
13. There are a number of new utility-level load response programs. One example is PacifiCorp's "Demand Exchange Pilot Program" - available to retail customers with demand of 4 MW and on-site generation capability of 1 MW - which pays participants the utility's avoided purchased power cost less their retail tariff rate for verified usage reductions.
14. See, for example, the reprise of studies of the first decades of load management and TOU experiments by John H. Chamberlin in chapter 4 of C.W. GELLINGS, W.L. BARRON, J.H. CHAMBERLIN, A. FARUQUI, AND B.A. SMITH, DEMAND FORECASTING FOR ELECTRIC UTILITIES (Lilburn, GA: Fairmont Press, 1992).
15. The Regulatory Assistance Project, Using a Demand Response to Stabilize Electric Markets, Feb. 2001, http://www.rapmaine.org/issue (April 25, 2001).