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Title: Real-Time Pricing and Demand Response in Alberta's Electricity Market
Authors: Karski, Roman
Issue Date: Aug-2013
Citation: Karski, Roman. (2013). Real-Time Pricing and Demand Response in Alberta's Electricity Market ( Unpublished master's thesis). University of Calgary, Calgary, AB.
Abstract: The deregulation of Alberta’s electricity market was focused on providing consumer choice and shifting the risk burden of investment from the public to the private sector. However, Alberta’s deregulated retail market has been distorted by the existence of the Regulated Rate Option (RRO); an electricity rate plan based on consistent, flat per-kWh pricing. With two-thirds of Albertans remaining on the RRO - thanks in part to its use as the default rate plan - inefficiencies permeate throughout the Province’s electricity market. Under flat rate pricing schemes, price signals from the market are not delivered to consumers, and consumers do not adjust consumption even when its marginal cost far outweighs the price they pay. This exacerbates periods of limited supply and results in higher overall pool prices. The effect on the profile of daily demand - known as the load curve - is larger “peaks” in demand, where prices are highest. Eliminating or reducing these peaks could result in lower overall pool prices, enhanced system reliability, lower emissions, fewer public investments in infrastructure, and fewer abuses of market power. Even small reductions in load can translate to large reductions in the pool price, as the pool price increases exponentially in reaction to a linear increase in load.
Appears in Collections:Master of Public Policy Capstone Projects

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