ENERGY USE AND CUSTOMER WELFARE EFFECTS OF RESIDENTIAL TIME-OF-USE RATES.

The first part presents an econometric analysis of data of the consumers response to time-of-use pricing of electricity from the Wisconsin Residential Time-Of-Use Electricity Pricing Experiment for July of 1977. A neoclassical consumer choice framework is employed that assumes a two-stage consumer budgeting process. This framework places emphasis on the estimation of substitution parameters in the context of conditional demand functions. The second part of the study considers measures of the welfare consequences for consumers of a shift to time differentiated rates.