Abstract: As one special time-of-use(TOU)rate,peak and valley time price is one of the measures for implementing demand side management(DSM) and beneficial to flattening the load curve if the peak and valley time periods are partitioned appropriately.The economical significance for the power suppliers and customers,the structure of TOU rate based on peak-valley,and the peak and valley time period partition approach are expounded by using price theory and economics theory.A TOU price target model is proposed based on the previous analysis,a model of the customer demand response to the TOU is thus presented from many references to a general customer demand response model.A new approach to peak-valley time-period partitioning and TOU rate setting is thus presented by optimizing the TOU price model as above of performance function in DSM.The numerical simulation results show that the method is feasible and reasonable.

Key words: time-of-use(TOU) rate, load shifting, customer demand response, numerical simulation