"The Impact of Retail Rate Deregulation on Electricity Consumption in San 
Diego" (April 2001) 
PWP-082 by James B. Bushnell and Erin T. Mansur
Retail electricity rates in the San Diego Gas & Electric service territory 
more than doubled over a period of three months during the summer of 2000. 
Much of this increase was subsequently rescinded through a retroactive rate 
freeze. We examine the impact of these events on overall consumption levels 
in San Diego. We find that average electricity consumption decreased by 
roughly 55 MW, or 1.6%, between mid-July and the end of August. Demand was 
reduced by over 6% in the late afternoon and late evening. Because of the 
uncertainty about the duration and the credibility of the rate increase, 
these results should be viewed as a lower bound on the demand reductions that 
could be achieved through pricing incentives.

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