Industrial Interruptible Power: An Economical Alternative

Abstract

Prevailing utility cost forecasts project that long-term energy costs will rise in real terms. With the addition of capacity construction costs into electric utility rate bases, electric power costs for some utilities will rise sharply. For utilities needing to start construction of new central station capacity, capital requirements could be essentially cost prohibitive. In view of this, utilities are demanded to develop methods that might reduce power costs to the ultimate consumer and at the same time increase the power supply reliability.

Interruptible power has proven successful on the TVA power system as a method of leveling demands and lowering costly system peaks. This type of power, offered to industrial customers in conjunction with firm power, benefits industry through lower power costs and provides TVA greater flexibility in operating its power system.

Where economical and technically feasible for specific industrial operations, interruptible power is an acceptable alternative. This paper will describe TVA's terms and provisions of two types of interruptible power it currently offers industrial customers.