An integrated monthly and hourly regional electricity model for Ontario, Canada

For constructing an integrated electricity demand model, we propose using a mixed fixed and random coefficient approach. This allows us to control for the regional differences in order that common responses to changes in climate and socio-economic factors can be consistently estimated. The model is estimated in three stages for municipal utilities in the Province of Ontario, Canada. Monthly kilowatt-hour and kilowatt demands are examined in the first stage. In the second stage, municipal load profiles are estimated holding economic and regional specific variables constant. In the third stage, differences in load patterns over time and across municipalities are explained as functions of economic activity, customer mix and relative energy prices.