The continuous increase of peak load in China hasthreatened the safety and stability of power grid, and air conditioning load has become an important part of the peak load. The abilityto store and transfer energy makes air conditioning load the mostpotential load in the respect of demand response. By reasonable controlling air conditioning load, peak load could be reduced and balance could be achieved between supply and demand at lower cost without affecting users’comfort. The relationship between the electricity price and the temperature set point of air conditioning was described by the consumer psychology theory, and the base line model of the aggregated air conditioning was built on the basis of equivalent thermal parameters(ETP) model. Then a new demand response program called progressive time differentiated peak pricing (PTPP) for air conditioning load was designed accordingly. At last, through simulation example, the implementation effect of the time differentiated peak pricing with that of the conventional critical peak pricing and proved the feasibility of the price mechanism was compared. The influence of different compositions of consumers on simulation results was analyzed, which provided the theoretical basis and reference data for the practical implementation of PTPP.