| Abstract | With the advent of smart meters that record electricity demand and use at intervals over each day, it is now possible for utilities to apply different rates for electricity used at different times of day. These are called time-varying rates (TVR) or time-of-day (TOD) rates. The purpose of charging different rates is to shift electricity use from times with high demand to those with lower demand, as a way to reduce peaks in demand, provide grid stability, and reduce costs. This report summarizes the public literature concerning the effects of TVR on electricity demand and consumption in winter, using reports from Canada and around the world. The general trends are that TVR rates almost always result in a reduction in peak demand and sometimes a small conservation effect. The higher the ratio between the peak and off-peak rates, the higher the peak demand reduction. Protection might be needed for low-income customers for whom the risk of a TVR-related bill increase might result in electricity charges that are a heavy burden. Program design, customer education, and feedback all influence the success of TVY implementation. |
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