Shocking news today from the New York Times: people buy less of stuff when it costs more.
In short, a government lab set up some homes to automatically adjust their power consumption based on real-time pricing and the owners’ pricing/comfort threshold. The result? Their power bills went down by 10%.
Unfortunately the article makes several mistakes? I know, reporters making mistakes? Never happens. But the mistakes may have actually come from the lab behind the work.
They start:
Giving people the means to closely monitor and adjust their electricity use lowers their monthly bills and could significantly reduce the need to build new power plants, according to a yearlong government study.
As I’ve said before, we shouldn’t be measuring progress based on the number of power plants. The real point is to continuously be building more that operate more cheaply, cleanly, and/or efficiently that can put the old, dirty, and/or expensive ones out of business.
Also notable, the article gives an overall cost savings without much going into the overall energy savings. It suggests that peak loads could be trimmed by up to 15%, but that can be interpreted many ways. Do they mean the peak load of each day? The peak load of each year? Will the load in non-peak hours be affected much? I suspect the energy savings were on the order of 3%.
On the upside, though, they do point out that regulated utility pricing schemes are horrible, as they don’t discourage saving. On the downside, they say that most of the country has such utilities while ignoring that a large minority of the country, including New York, does not.
