UTILITY AVERAGING POLICIES - IMPACT ON CONSUMERS ENERGY USAGE

Average Monthly Payment (AMP) plan is a utility policy designed to ass ist consumers in need such as low income and elderly. This study exami nes whether this utility policy is an advantage to these target custom ers. Results indicate that, with a muted price signal, the AMP plan pr oduces an effect contrary to the objective of assisting low and fixed income consumers. Further, the study indicates consumers on the AMP pl an consume more energy and the AMP plan does not appear to support ene rgy conservation and efficiency.