On the Role of Maximum Demand Charges in the Presence of Distributed Generation Resources

David Brown and David Sappington

No 2016-16, Working Papers from University of Alberta, Department of Economics

Abstract: We examine the role that maximum demand charges (MDCs) can play in avoiding the death spiral that some utilities may otherwise face as the distributed generation (DG) of electricity proliferates. We find that MDCs generally secure gains for consumers that do not undertake DG, and often secure gains for consumers that undertake DG. However, the welfare gains tend to be modest in plausible settings. Furthermore, time-of-use pricing often secures larger welfare gains than do MDCs.

Keywords: maximum demand charges; distributed generation; time-of-use prices; electricity regulation (search for similar items in EconPapers)
JEL-codes: D47 L50 L94 Q40 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2016-10-17
New Economics Papers: this item is included in nep-ene and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://sites.ualberta.ca/~econwps/2016/wp2016-16.pdf Full text (application/pdf)

Related works:
Journal Article: On the role of maximum demand charges in the presence of distributed generation resources (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:albaec:2016_016

Access Statistics for this paper

More papers in Working Papers from University of Alberta, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Joseph Marchand ().