Abstract
This study examines the own price elasticity of demand for electricity in the Greater Sacramento Area. Data corresponded to customer billing information from the Sacramento Municipal Utility District for Summer 2012. Both linear and logarithmic functional forms, as well as fixed and random effects models, were estimated to examine the effects of price changes on usage. A number of other variables, such as temperature, a one-period lag in use, and various binomial event indicators, were also included as determinants of daily electricity usage. The results indicate that the daily price elasticity is in the range of -0.0210 to -0.0702 for the double log model, while the linear estimates range from -0.0037 to -0.2726, with temperature playing an important role in both models.