Residential electricity demand in Seattle

David Alan Juarez, University of Texas at El Paso


This study examines residential electricity demand for the Seattle City Light (SCL) public utility market. SCL is interesting because all of its electricity is generated through hydro-electric facilities as well as its purchased power, mostly through contracts with the Bonneville Power Administration, resulting in below-average residential electricity prices. An error-correction model is estimated using annual time series data. Income, price, and climate data are used to identify both economic and seasonal effects. In addition, a customer equation is also estimated using the error-correction approach. The income-elasticity is negative indicating that electricity is an inferior good in this market. Out-of-sample forecasts are generated using compound annual growth rates.

Subject Area

Economics|Economic theory|Energy

Recommended Citation

Juarez, David Alan, "Residential electricity demand in Seattle" (2011). ETD Collection for University of Texas, El Paso. AAI1494313.