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The impact of the cperation of Electric Thermal Storage (ETS) equipment o a residential customr's daily load shape, based on test data, was estimated. The effect on the system's load shape was then determined, and an evaluation of econormic benefits resulting frcm this change performed, both from the standpoint of an individual ETS installation and a hypothetical expansion of installations. Incentives required to implement sach a program wre considered, and costs of such incentives compared with expected benefits. Finally, the rumber of ETS installations which the AEP System could accommodate was considered, to assess the feasibility of a potential ETS implementation program.