Modeling the Impact of Residential Time of Use Rates

As a part of BC Hydro’s Advanced Metering Initiative (AMI), a time of use rate pilot project involving some 2,000 residential customers was implemented for winter 2006/07 and winter 2007/08. Customers participating in the project had an advanced meter installed at their house, and they also received information on how they could save energy during the peak period and shift load from the peak period to the off peak period. The goal of the project was to determine whether customers respond to pricing signals and information on energy use and to determine the magnitude of the responses. This study used a variety of evaluation methods including random assignment of customers to different treatment groups and control groups, interviews with project staff, documents review, focus groups, pre and post customer surveys, and econometric analysis in order to assess and understand customers’ pricing preferences and their responses to pricing signals.