Impact of Industrial Electric Rate Structure on Load Management - A Utility Viewpoint

Abstract

A few years ago our response to an inquiry regarding availability of electric service for a large industrial load was something like: 'Let us put this into our production model to determine whether we will have adequate generating capacity to commit to your needs plus load increases under contract and anticipated residential and commercial load growth. If our studies show that we will have generating capacity available, then we should allow a minimum of two years for design and construction. Of course, you will need to plan to build and maintain your substation.'

Today our response would be more like 'How soon can you be ready? Can we build and/or maintain your substation for you? Perhaps we can locate a transformer for you to use until permanent facilities are in place?'

What has happened to utilities such as GSU to change our perspective so quickly? The turn around began around New Years of 82 with the realization by industry that the recession which had been developing for some 6 months in retail and construction areas was now affecting basic industry. Later we learned that this recession was the most severe and long lasting in this country since the great depression of the 1930's and that fundamental changes would be required by basic industry if it were to survive. Resulting plant reductions and closings severely impacted utilities heavily dependent on industrial business.