The cost impacts of a mandatory move to time-of-use pricing on residential customers: An Ontario (Canada) case-study

Energy Efficiency

Volumn 4, Issue 4, 2011, Pages 571-585

  Rowlands, Ian H ^a   Furst, Ian M ^b  

^a UNIVERSITY OF WATERLOO   (Canada)

^b Cambridge Memorial Hospital   (Canada)

Author keywords

Canada; Electricity; Residential; Time of use pricing

Indexed keywords

CANADA; CONSUMPTION PATTERNS; COST IMPACT; ONTARIO; PEAK PERIOD; PRICING STRUCTURES; RESIDENTIAL; RESIDENTIAL CUSTOMERS; TIME-OF-USE PRICING; TOTAL COSTS;

COSTS; ELECTRICITY; SALES;

CUSTOMER SATISFACTION;

COMMODITY PRICE; ELECTRICITY; HOUSEHOLD ENERGY; RESIDENTIAL ENERGY;

CANADA; MILTON; ONTARIO [CANADA];

EID: 80052530801     PISSN: 1570646X     EISSN: 15706478     Source Type: Journal    
DOI: 10.1007/s12053-011-9113-y     Document Type: Article

References (43)

1. Acton, J. P. & Mitchell, B. M. (1979). Evaluating time-of-day electricity rates for residential customers. Prepared for the Los Angeles Department of Water and Power by the Rand Corporation, Santa Monica, CA. R-2509-DWP, http://www. rand. org/pubs/reports/2009/R2509. pdf. Accessed 1 June 2010.
2. Aigner, D. J. (1985). The residential electricity time-of-use pricing experiments: What have we learned? In J. A. Hausman & D. A. Wise (Eds.), Social experimentation (pp. 11-54). Chicago, IL: The University of Chicago Press for the National Bureau of Economic Research.
3. Alexander, B. (2007). Smart meters, real time pricing, and demand response programs: Implications for low income electric customers. Prepared under contract to the Oak Ridge National Laboratory UT-Battelle, LLC. http://www. pulp. tc/Smart_Meters__Real_Time. pdf. Accessed 1 June 2010.
4. Allcott, H., & Mullainathan, S. (2010). Behavior and energy policy. Science, 327(5970), 1204-1205.
5. Andersen, C. (2010). Rising costs and conservation opportunities: "Opening Remarks". Presentation to Milton Hydro Annual General Meeting, Milton, ON. 4 June 2010. http://www. powerauthority. on. ca/Storage/121/16830_sp-camiltonhydrofinal2. pdf. Accessed 10 August 2010.
6. Brockway, N. (2008). Advanced metering infrastructure: What regulators need to know about its value to residential customers. Silver Spring, MD: National Regulatory Research Institute, 08-03. http://nrri. org/pubs/multiutility/advanced_metering_08-03. pdf. Accessed 1 June 2010.
7. CPUC (2010). CPUC selects independent evaluator for PG& E smart meters. San Francisco, CA: California Public Utilities Commission. http://docs. cpuc. ca. gov/PUBLISHED/NEWS_RELEASE/115561. htm. Accessed 4 May 2010.
8. Dewees, D. N. (2010). The price isn't right: The need for reform in consumer electricity pricing. Toronto, ON: C. D. Howe Institute, Backgrounder No. 124, January. http://www. cdhowe. org/pdf/backgrounder_124. pdf. Accessed 1 June 2010.
9. eMeter Strategic Consulting (2009). PowerCentsDC program interim report. San Mateo, CA: eMeter Strategic Consulting for the Smart Meter Pilot Program, Inc. http://www. powercentsdc. org/ESC%2009-11-02%20PCDC%20Interim%20Report%20FINAL. pdf. Accessed 1 June 2010.
10. Faruqui, A. (2010). The ethics of dynamic pricing, San Francisco, CA: The Brattle Group. http://www. smartgridnews. com/artman/uploads/1/The_Ethics_of_Dynamic_Pricing__03-30-10_. pdf. Accessed on 1 June 2010.
11. Faruqui, A. & Sergici, S. (2010). Household response to dynamic pricing of electricity: A survey of the empirical evidence. http://ssrn. com/abstract=1134132. Accessed 3 May 2010.
12. Faruqui, A. & Wood, L. (2008). Quantifying the benefits of dynamic pricing in the mass market. San Francisco, CA: The Brattle Group, prepared for the Edison Electric Institute. http://www. eei. org/ourissues/electricitydistribution/Documents/quantifying_benefits_final. pdf. Accessed 1 June 2010.
13. Faruqui, A., Sergici, S. & Wood, L. (2009). Moving toward utility scale deployment of dynamic pricing in mass markets. Washington, DC: Institute for Electric Efficiency. http://www. edisonfoundation. net/iee/reports/IEE_Utility-ScaleDynamicPricing_0609. pdf. Accessed 1 June 2010.
14. Faruqui, A., Hledik, R., & Sergici, S. (2010). Rethinking prices: The changing architecture of demand response in America. Public Utilities Fortnightly, 148(1), 30-39.
15. Government of Ontario (2009). McGuinty government rolls out time-of-use rates. News Release, http://www. newswire. ca/en/releases/archive/May2009/14/c3945. html. Accessed 12 March 2010.
16. Greening, L. A., Greene, D. L., & Difiglio, C. (2000). Energy efficiency and consumption - the rebound effect - a survey. Energy Policy, 28, 389-401.
17. Hamilton, T. (2009). Smart meter phase-in sparks cost fears. The Toronto Star. 30 October.
18. Hartway, R., Price, S., & Woo, C. K. (1999). Smart meter, customer choice and profitable time-of-use rate option. Energy, 24, 895-903.
19. Hausman, W. J., & Neufeld, J. L. (1984). Time-of-day pricing in the U. S. electric power industry at the turn of the century. The Rand Journal of Economics, 15(1), 116-126.
20. Hydro One (2008). Time-of-use pricing pilot project results. Toronto, ON: Hydro One Networks Inc., delivered to the Ontario Energy Board, EB-2007-0086, May. http://www. oeb. gov. on. ca/documents/cases/EB-2004-0205/smartpricepilot/TOU_Pilot_Report_HydroOne_20080513. pdf. Accessed 1 June 2010.
21. IESO (2009). The Ontario reliability outlook, December. Toronto, ON: Independent Electricity System Operator, http://www. ieso. ca/imoweb/pubs/marketReports/ORO_Report-Dec2009. pdf. Accessed 10 August 2010.
22. IESO (2010a). Wind power in Ontario generates a new record in 2009. Toronto, ON: Independent Electricity System Operator. News Release. http://www. ieso. ca/imoweb/media/md_newsitem. asp?newsID=5019. Accessed 12 March 2010.
23. IESO (2010b). Demand overview. Toronto, ON: Independent Electricity System Operator, http://www. ieso. ca/imoweb/media/md_demand. asp. Accessed 12 March 2010.
24. IESO (2010c). Ontario demand peaks. Toronto, ON: Independent Electricity System Operator, http://www. ieso. ca/imoweb/media/md_peaks. asp. Accessed 10 August 2010.
25. Johnston, M. M. (2009). Consumer protections and smart meters: Issues for Victoria. Deakin West, ACT: St. Vincent de Paul Society National Council, August, http://vinnies. org. au/files/NAT/SocialJustice/August09CustomerProtectionsandSmartMeters-IssuesforVictoria(amended). pdf. Accessed 3 May 2010.
26. Messenger, M. (no date given). Statewide pricing pilot (SPP): Overview and results 2003-2004. http://www. sierraclub. ca/national/postings/spp-summary. pdf. Accessed 3 May 2010.
27. Milton Hydro Distribution Inc. (2010). Smart meter/TOU filing: Appendix C. Milton, ON: Milton Hydro Distribution Inc., letter to the Ontario Energy Board. 11 January. http://www. oeb. gov. on. ca/OEB/_Documents/SMdeployment/sm_report_Milton_201001. pdf. Accessed 1 June 2010.
28. Navigant Consulting (2008). Evaluation of time-of-use pricing pilot. Toronto, ON: Navigant Consulting Inc., presented to Newmarket Hydro Ltd. 4 March. http://www. oeb. gov. on. ca/documents/cases/EB-2004-0205/smartpricepilot/TOU_Pilot_Report_Newmarket_20080304. pdf. Accessed 1 June 2010.
29. Newsham, G. R., & Bowker, B. G. (2010). The effect of utility time-varying pricing and load control strategies on residential summer peak electricity use: a review. Energy Policy, 38(7), 3289-3296.
30. OEB (2007). Ontario Energy Board smart price pilot: Final report. Toronto, ON: prepared by IBM Global Business Services and eMeter Strategic Consulting for the Ontario Energy Board, July. http://www. oeb. gov. on. ca/documents/cases/EB-2004-0205/smartpricepilot/OSPP%20Final%20Report%20-%20Final070726. pdf. Accessed 1 June 2010.
31. OEB (2008). Regulated price plan - Time-of-use prices: Design and price setting issues. Toronto, ON: Ontario Energy Board. Staff discussion paper. EB-2007-0672, 17 April. http://www. oeb. gov. on. ca/OEB/_Documents/EB-2007-0672/TOU_Staff_Discussion_Paper_20080417. pdf. Accessed 1 June 2010.
32. OEB (2010a). Regulated price plan: Price report, May 1, 2010 to April 30, 2011. Toronto, ON: Ontario Energy Board. 15 April. http://www. oeb. gov. on. ca/OEB/_Documents/EB-2004-0205/RPP_PriceReport_20100415. pdf. Accessed 1 June 2010.
33. OEB (2010b). Monitoring report: Smart meter deployment and TOU pricing - 2009 fourth quarter. Toronto, ON: Ontario Energy Board. 25 February. http://www. oeb. gov. on. ca/OEB/_Documents/SMdeployment/SM_Monitoring_Report_20100225. pdf. Accessed 12 March 2010.
34. Ontario Federation of Agriculture (2008). [Ontario Energy Board] consultation on time-of-use pricing framework (EB-2007-0672): Ontario Federation of Agriculture (8 July), "Time of use (TOU) billing structure". May.
35. Ontario Ministry of Energy and Infrastructure (2009). Smart meters. http://www. mei. gov. on. ca/en/energy/electricity/?page=smart-meters. Accessed on 12 March 2010.
36. OPA (2006). Ontario's integrated power system plan: Supplemental load forecast information. Toronto, ON: Ontario Power Authority, http://www. ontla. on. ca/library/repository/mon/16000/269050. pdf. Accessed 10 August 2010.
37. Pollock, A. & Shumilkina, E. (2010). How to induce customers to consume energy efficiently: Rate design options and methods. Silver Spring, MD: National Regulatory Research Institute. January 2010. 10-03. http://www. nrri. org/pubs/electricity/NRRI_inducing_energy_efficiency_jan10-03. pdf. Accessed 1 June 2010.
38. Simmons, S. I. (2010). Investigating the impacts of time-of-use electricity rates on lower-income and senior-headed households: A case study of Milton, Ontario (Canada). Waterloo, ON: Faculty of Environment, University of Waterloo. MES thesis. http://uwspace. uwaterloo. ca/handle/10012/5041. Accessed on 1 June 2010.
39. Smith, M. (2008). [Ontario Energy Board] consultation on time-of-use pricing framework (EB-2007-0672): Monica Smith (8 July). 13 June. http://www. oeb. gov. on. ca/OEB/_Documents/EB-2007-0672/submission_MonicaSmith_20080613. pdf, accessed on 3 March 2010.
40. Sorrell, S., Dimitropoulos, J., & Sommerville, M. (2009). Empirical estimates of the direct rebound effect: a review. Energy Policy, 37(4), 1356-1371.
41. Spears, J. (2009). Toronto set for time-of-day use power pricing. The Toronto Star. 14 May.
42. Stokke, A. V., Doorman, G. L., & Ericson, T. (2010). An analysis of a demand charge electricity grid tariff in the residential sector. Energy Efficiency, 3(3), 267-282.
43. Train, K. (1991). Qualitative choice analysis. Cambridge, MA: MIT Press.