California learned in 2001 that providing incentives to electricity customers to use less power could net significant reductions in demand. Motorists are responding to higher prices this month by driving less. They may also be responding to appeals for conservation from the White House. But it appears 3 dollars/gn gasoline has done what many economists thought 2 dollars would do. The delay and price buffers built into the electricity market mean such a response is unlikely on a national level without aggressive discounts and public relations to encourage businesses and homeowners to use less. There is also a delay in response when it comes to space heating, whether the fuel is power, gas or oil. An early cold heating season will not show up on bills until mid-December at the earliest, and a mild start to the winter could placate consumers into keeping the thermostat steady.
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