Industrial Load Shaping: A Utility Strategy to Deal with Competition

Abstract

In recent years competition from various sources such as cogeneration and bypass has led many utilities to refocus attention on their large industrial customers. Industrial load shaping is a customized program involving cost-effective process modifications and operational changes which result in a restructuring of the electric load profile of individual manufacturing facilities. Both the customer and the utility should realize benefits from these changes. There are five generic load shaping categories: rescheduling operations, capacity additions, product storage, automation and flexible manufacturing and electrotechnologies. The customized nature of the program requires that the utility work with industry experts to help customers identify specific load shape opportunities. The remainder of this paper provides guidelines for utility planners interested in developing such a program. It begins with an overview of general objectives, technology alternatives, market evaluation and selection criteria, and program implementation and monitoring procedures. The paper concludes with two utility case studies.