2018 Conference

Poster Presentation

This paper explores Peak Time Rebates (PTR) to see how and if they change consumers’ behaviors during specific peak time events (such as hot, summer days). PTRs gives customers a rebate on their next utility bill for every kilowatt of energy saved during peak-demand hours. The paper conducts research on how the Peak Time Rebate programs informs consumers on peak demand periods and why utility companies can greatly benefit from offering such a program.

The current problem at hand is that peak-demand periods overloads the power grid forcing utility companies to turn on additional power plants during high-demand periods, such as hot days or peak hours typically after work. Utility companies have the infrastructure and capacity to provide power during those relatively few events of peak-demand hours in a year, however using that capability increases baseload prices by around 50-100 times and increases greenhouse gas emissions from burning fossil fuels. However, utility companies also typically don’t have dynamic prices per kilowatt and during peak times wholesale costs exceed the retail rate. While the consumer bears no burden on these peak-time rates this provides utility companies with a large incentive to promote a reduction in energy.

The organization with the most to gain are the utility companies. They gain to save money by eliminating turning on one more power plant to meet demand, keeping costs down while also emitting less carbon dioxide. However, consumers or residents could greatly benefit from knowledge about peak-time events. Changing their knowledge and providing minimal monetary incentive will help address the problem. In this paper, I focus primarily on behavioral science in connection with demand response programs and discuss and explore effective and ineffective strategies in engaging homeowners to exhibit energy efficient behavior.