Industrial Response to Electricity Real‐time Prices: Short Run and Long Run

Real‐time pricing reduces summer peak demand by approximately 8% for 110 Duke Energy industrial customers. With up to six summers on the rate, the aggregate customer response increases with experience. Examining individual customers, only a subset respond significantly, primarily those who can self‐generate or with discrete (batch) production processes. These customers respond significantly above a threshold level of price. Although elasticities decrease slightly at the highest temperatures, the absolute quantity reductions are largest at these times.