The Conservation And Welfare Effects Of Information In A Ti

Evidence from household electricity-use monitors in a Southern California Edison Co. experiment is used to investigate the effects of peak:off-peak (P:OP) rates and time-of-day (TOD) pricing on electricity usage. The monitors provided consumers with the current cost of electricity in cents per hour, the accumulated monthly electricity cost, and the amount of the last bill. The evidence indicates that the information provided by the monitor influences the distribution of P:OP period electricity consumption. This suggests that short-term TOD pricing experiments may have understated consumers' desired response to P:OP prices. It is concluded that the beneficial impact of TOD prices on utilities' load management is probably somewhat greater than prior research has indicated.