Residential Electricity Prices: A Review of Data Sources and Estimation Methods
This paper presents an empirical study of residential electricity prices based on a compilation of tariff data collected for Lawrence Berkeley Lab's Tariff Analysis Project (TAP). We also review other data sources commonly used to estimate residential sector electricity prices, including utility data published by the Energy Information Administration (EIA), the Typical Bills reports published by the Edison Electric Institute, and household-level electricity consumption and expenditure data included with the EIA's Residential Energy Consumption Surveys. We define three different types of price that can be estimated from the data, construct estimation methods, compare the results and evaluate the relative strengths and weaknesses of each approach. We examine several sources of variation including seasonal, regional, industry structure, and the magnitude of baseline household consumption. The tariff data are also used to explore the impact of moving households from standard tariffs to time-of-use pricing, and to summarize how this aects predictions of electricity bill savings for both demand reduction and demand shifting.