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Time-of-Use Pricing for Electric Power: Implications for New York Dairy Farmers

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Abstract

This report examines new residential time-of-use electricity rates and the effects they may have on New York dairy farms. The operational and regulatory framework for electric utilities is discussed and the rationale for moving from flat rate pricing to time-ofuse pricing is explained. Major farm activities requiring the use of electricity, as well as the daily operation times of major equipment clusters, are reviewed. Survey data are utilized to group farms by size and equipment to portray "typical" electrical usage patterns for a cross section of farm types. This study also estimates current electricity costs to farmers. These estimates help set the stage for evaluating the impact time-of-use rates may have on many dairy farms within the state. Finally, some options are reviewed that farmers may wish to adopt in response to perceived cost changes from time-of-use rates.

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A.E. Ext. 91-23

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1991-09

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Charles H. Dyson School of Applied Economics and Management, Cornell University

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report

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