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MAE406
Energy Conservation in Industry
Stephen Terry
Power
d
(time
)
Residential Bill
Small service charge: for CP&L = $6.75
Energy Charge: about $0.095/kWh for energy
used in the summer and $0.085/kWh for winter.
Demand Charge: does not apply since household
is small user
Taxes, Rebates: varies with user
Demand Intervals
1200
Power, kW
1000
800
600
400
200
0
12:00 AM
4:00 AM
8:00 AM
12:00 PM
hour of day
4:00 PM
8:00 PM
Billing Demand
The demand interval is usually 15, 30, or 60
minutes (see rate schedule).
The maximum value of the power for all intervals
in a month is the peak demand.
Billing demand = peak demand, unless it is well
below historical peaks or contract demand.
Usage
Rate
Service
Charge
$500.00
Energy
350,000 kWh
$0.036335
$12,722.50
Demand
1,000 kW
$11.25
$11,250.00
Taxes
Total
3% of bill
$734.18
$25,206.68
Power, kW
1000
800
600
400
200
0
12:00 AM
4:00 AM
8:00 AM
12:00 PM
hour of day
4:00 PM
8:00 PM
Usage
Rate
Service
Charge
$500.00
On-peak Energy
150,000 kWh
$0.03048
$4,572.00
Off-peak Energy
200,000 kWh
$0.02548
$5,096.00
Demand (summer)
1,000 kW
$19.56
$19,560.00
Taxes
Total
3% of bill
$891.84
$30,619.84
Notes:
TOU bill is more in this case. What is usage factor
(is this a 1, 2, or 3 shift plant?)
Usage Factor
=
kWh / kW demand
= 350,000 kWh/ 1,000 kW
= 350 hrs/month
= 16 hrs/day
Plant probably operates two full shifts, maybe three
shifts with lower production at night.
Notes:
Time of use benefits companies that work seven
days per week and manufacture at night.
Costs can be reduced by scheduling operations
around peak periods load shifting.
Costs can be reduced by utilizing thermal storage
for HVAC system and operating equipment during
off-peak periods.
Duke Rate I
Double tiered schedule based on ratio of kWh/kW
demand, then sub-tiered based on energy usage
within kWh/kW tier.
These rates are difficult to compute, but generally
reward companies that operate more hours and
have flatter power profiles.
Average Errors
Example 1: Turn lights off at night. For a time of
use rate, what is proper energy charge if lights are
turned off at 11 pm and back on at 6 am? How
about demand?
Example 2: Adding a new air conditioner to
handle peak cooling. When does unit operate and
what is energy cost? How about demand?
Power Factor
Some utilities will charge for power factor.
Power factor is the phenomenon of peak current
draw being out of phase with peak voltage draw.
This causes the power company to have to supply
more power than is registered on the meter.
Major causes electric motors that draw current
for magnetizing the windings (inductive loads)
Power Factor
Solution: install capacitors to offset inductive
loads
Check to see if youre charged for power factor
first, most NC companies arent!
Other Charges
Fuel Riders let power company adjust for highly
varying prices for their fuel
Facilities Charges extra equipment installed onsite, like a larger transformer or power fed from
two separate lines for redundancy.
Deregulation
Over the past 15 years, some state have
deregulated electrical power.
This means that billing for the three basic
components are separate and users may choose
their own suppliers:
Generation
Transmission
Distribution
Deregulation
Virginia has partially deregulated its markets and
will fully deregulate in 2010.
NC has no plans to deregulate anytime soon
Experience has shown that most people see an
increase in costs with deregulation because
companies must compete with high cost of
electricity to places like California.
Conclusions
Most power companies bill energy and demand.
It is important to know your rate, on-peak hours
and all costs.
Use proper energy and demand rates for
computing energy costs and savings.