Load Management: Opportunity or Calamity?

Abstract

After the change in the economics of generating electricity which took place in 1973, many utilities are examining options to hold down their costs. One fact which is clear is that the difference between peak and off peak generating costs is much larger now than prior to 1973.

Utilities are examining two options which can be termed load management. One option is to control discretionary loads during peak periods. Cycling of residential water heaters or shutting off industrial electric furnaces during peak periods are both examples of load control which lower the costs borne by the utility. The other option is the use of seasonal surcharges or time-of-day rates to induce customers to alter their usage patterns.

Both these load management options focus on reducing utility costs overall without regard to the cost to the consumers affected by the load management options. The issue, then, is whether industrial customers can find opportunities to lower their costs under load management.