Appropriateness of a Load-Management Agreement as the Rate Format for Customer Thermal Storage: Why a Closeout Sale on off-Peak Electricity Should Be Adopted

摘要

This report demonstrates why a load-management agreement is the best rate format for customer thermal energy storage (TES) from electricity. The first section presents the basic operating and cost characteristics of TES systems as well as potential problems that affect rate setting. Then, the criteria for choosing a rate structure are put forth, and the various rate formats available are analyzed considering the above information. Finally, the means of achieving the maximum social benefits using a load-management agreement are explored. (ERA citation 05:036755)