IDEAS home Printed from https://ideas.repec.org/a/cup/jechis/v47y1987i03p693-709_04.html
   My bibliography  Save this article

Price Discrimination and the Adoption of the Electricity Demand Charge

Author

Listed:
  • Neufeld, John L.

Abstract

Between 1905 and 1915, as state price regulation became widespread, electric utilities in the United States faced severe competition. The primary source of electricity for industry then was not utilities but self-generation by the user in an “isolated plant.” The demand-charge rate structure first became widespread during this period. The demand-charge rate structure has been interpreted as a misapplication of the peak-load pricing principle, a view which has made its popularity a puzzle. Instead it was adopted as a sophisticated mechanism which institutionalized profit-maximizing price discrimination given the competition from isolated plants.

Suggested Citation

  • Neufeld, John L., 1987. "Price Discrimination and the Adoption of the Electricity Demand Charge," The Journal of Economic History, Cambridge University Press, vol. 47(3), pages 693-709, September.
    • Handle: RePEc:cup:jechis:v:47:y:1987:i:03:p:693-709_04
    as

    Download full text from publisher

    File URL: https://www.cambridge.org/core/product/identifier/S0022050700049068/type/journal_article
    File Function: link to article abstract page
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Brown, David P. & Sappington, David E.M., 2018. "On the role of maximum demand charges in the presence of distributed generation resources," Energy Economics, Elsevier, vol. 69(C), pages 237-249.
    2. María Inés Barbero & Andrea Lluch & Norma S. Lanciotti & Alexandre Macchione Saes, 2014. "American & Foreign Power in Argentina and Brazil (1926–65)," Australian Economic History Review, Economic History Society of Australia and New Zealand, vol. 54(2), pages 120-144, July.
    3. Arellano, M. Soledad & Serra, Pablo, 2007. "Spatial peak-load pricing," Energy Economics, Elsevier, vol. 29(2), pages 228-239, March.
    4. Ziyi Zhao, 2023. "Operation Simulation and Economic Analysis of Household Hybrid PV and BESS Systems in the Improved TOU Mode," Sustainability, MDPI, vol. 15(11), pages 1-23, May.
    5. Vincent Geloso & Germain Belzile, 2018. "Electricity in Quebec before Nationalization, 1919 to 1939," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 46(1), pages 101-119, March.
    6. Strong, Derek Ryan, 2017. "The Early Diffusion of Smart Meters in the US Electric Power Industry," Thesis Commons 7zprk, Center for Open Science.
    7. Seung-Ju Lee & Yourim Yoon, 2020. "Electricity Cost Optimization in Energy Storage Systems by Combining a Genetic Algorithm with Dynamic Programming," Mathematics, MDPI, vol. 8(9), pages 1-20, September.
    8. Madureira, Nuno Luís, 2010. "The European debate on rate systems in the interwar period," Energy Policy, Elsevier, vol. 38(8), pages 4703-4711, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cup:jechis:v:47:y:1987:i:03:p:693-709_04. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Kirk Stebbing (email available below). General contact details of provider: https://www.cambridge.org/jeh .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.