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Workshop KM att Brakey by xV3WmZE

VIEWS: 9 PAGES: 36

									Workshop K

     FirstEnergy: Significant
     Savings Opportunities Buried
     Within the Rate Structures
     February 27th, 2007
Presenters

   Matthew Brakey
       President, EnergyManager.com
       Vice President, Brakey Consulting
   Dave Blank
       Vice President, Rates and Regulatory
        Affairs, FirstEnergy Corp.



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A few important notes

   All examples are from actual
    EnergyManager.com & Brakey
    Consulting clients
   Each electric profile is unique
       What is true for one profile, may not be
        true for you
       Knowing your profile is the first step to
        savings!
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Ohio FirstEnergy companies




                             4
Key billing determinants
   Consumption
       Kilowatt hours (kwh)
   Peak demand
       Kilowatt demand (kw)
   Power factor
       Apparent power (kva), real power (kw), and
        reactive power (rkva)
   Rate schedule
       Seasonal variation (summer/winter)
       Cost allocation variation

                                                     5
Key savings opportunities
   Consumption
       Kilowatt hours (kwh)
   Peak demand
       Kilowatt demand (kw)
   Power factor
       Apparent power (kva), real power (kw), and
        reactive power (rkva)
   Rate schedule
       Seasonal variation (summer/winter)
       Cost allocation variation

                                                     6
Metering services

   Interval Metering available from
    FirstEnergy
       Requires a dedicated phone line
       Results available on energyprofiling.com
       Metering interval is same as demand
        window
   Real time metering available from
    other companies
                                                   7
EnergyProfiling.com




                      8
Consumption
   Kilowatt hours
       A measure of electricity consumed over the
        billing period




                                                     9
Consumption charges
                  $179,000 bill
                      87% load factor
                      Rate Schedule
                          CEI – Large
                           General Service
                  Marginal cost of
                   100 kwh’s
                   consumed
                      Off peak: $1.49
                          1.489¢/kwh

                                             10
Peak demand
    Peak Demand
       Highest consumption of electricity over a set time
        window
       15 or 30 minutes
            Converted to an hourly interval
        Appears on bill as billed load in kw/kva




                                                             11
Peak demand

   Demand windows
       Period of time in which peak demand is
        determined
           15 minutes for some TE rates including small
            and medium general service
           30 minutes for OE, IC, and some TE rates
       Consumption (kwh) quadrupled or
        doubled respectively determines demand

                                                       12
Why demand charges?

   Capacity must exist to meet highest
    instantaneous demand
       Demand increases require utility peaking
        capacity
           New generation, delivery, and transmission
            assets
       Uneven load results in idle utility
        resources

                                                         13
Load factor

   A measure of scheduling efficiency
       kwh ÷ [(24 hours) x (days in billing period)] ÷ kwd




                                                              14
               Poor scheduling efficiency

                   5-day, 1-shift operation
                               24.4% Load Factor
              120

              100
Demand (kw)




               80

               60

               40

               20

                0

                                 6/16/2006 to 7/28/2006

                                                          15
                    Below average scheduling
                    efficiency

                       5-day, 2-shift operation
                                   39% Load Factor
              700
              600
Demand (KW)




              500
              400

              300

              200
              100
                0

                                        12/16 to 1/16

                                                        16
                Good scheduling efficiency

                     5-7 days, 3-shift operation
                                 66.6% Load Factor

              1,600
              1,400
Demand (kw)




              1,200
              1,000
               800
               600
               400
               200
                 0

                                      10/25 to 11/25

                                                       17
                Excellent scheduling efficiency

                   7-day, 3-shift operation
                              80.4% Load Factor
              900
              800
Demand (kw)




              700
              600
              500
              400
              300
              200
              100
                0

                                    10/25 to 11/25

                                                     18
Demand charges vs.
consumption charges
                  $179,000 bill
                      87% load factor
                      Rate Schedule
                          CEI – Large General
                           Service
                  Marginal cost of 100
                   kwh’s consumed
                          Off peak: $1.49
                              1.489¢/kwh
                          On peak: $2,933.50
                              $29.34/kwd


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Relationship between
consumption and demand

   Conservation alone is not always an
    effective means of reducing energy costs
   Improving scheduling efficiency should be
    central focus for most FirstEnergy
    commercial & industrial customers
   Implications
       Scheduling equipment
       Adding and removing shifts

                                                20
Available FE rates that do not
have demand charges

   Illuminating Company
       Residential
       General Service
   Ohio Edison
       Residential
   Toledo Edison
       Residential

                                 21
Demand savings example
                   Shift 100 kw to off peak
                       New peak demand of 536.5
                       Holding consumption constant
                               39% Load Factor
              700

              600
Demand (KW)




              500
              400

              300
              200
              100
                0

                                    12/16 to 1/16

                                                       22
Demand savings example
                 $19,000 bill
                     $39% load factor
                     Rate schedule
                         OE – rate 23
                 With no conservation,
                  we can still decrease
                  this bill $2,154 (11.5%)
                  if…
                     We shift 100 kw from
                      on peak to off peak
                         Demand would
                          decrease 100 kw

                                             23
Power factor

   The ratio of real power to apparent power
   PF = kw ÷ kva




                                                24
Why power factor charges?

   The utility supplies apparent power
    (kva) but you consume real power (kw)
       The difference, reactive power (kvar), is a
        cost to the utility




                                                  25
How it appears on bill
   Ohio Edison
       Onpeak power factor
   Toledo Edison and The Illuminating Co.
       Billed reactive demand




                                             26
Power factor improvement

   Can I justify power factor
    improvement?
       Payback varies significantly from territory
        to territory, rate schedule to rate schedule
       Ohio Edison offers best opportunities
           Especially General Service Large - Rate 23
       Future rate changes may incentivize TE
        & CEI power factor correction
                                                         27
Available FE rates that do not
have power factor charges

   Illuminating Company
       Residential
       General Service
   Ohio Edison
       Residential
       Rate 21 – General Service
           If over 85% PF
   Toledo Edison
       Residential
                                    28
Power factor savings example
   $26,000 bill
       Rate schedule
           OE – rate 23
       78.7% power factor
       $4,400 monthly savings opportunity




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Rate schedules

   Do you qualify for a less costly rate
    schedule?
   Changes in electric profile may
    make alternative rates more
    attractive
       It is the customer’s responsibility to
        determine the optimum schedule

                                                 30
Rate schedule opportunity:
Example 1
                   $179,000 winter bill
                       87% load factor
                       Rate schedule
                           Customer recently
                            switched from All
                            Electric to Large
                            General Service
                   This profile would be,
                    on average, paying
                    $3,000/month more
                    under All Electric

                                                31
Rate schedule opportunity:
Example 2
                   $53,000 winter bill
                       88% load factor
                       Rate Schedule
                           Customer recently
                            switched from Small
                            General to Large
                            General
                       This usage profile
                        would, on average, be
                        paying $18,500/month
                        more on Small General
                        Service

                                                  32
Rate schedule opportunities in
OE and TE

   Very few opportunities exist to switch
    between schedules
       TE Medium General service is a “catch all” for
        most industrial and large commercial customers
           All customers with monthly demand from 150 to 8,000
            kw
       Most OE rates are dependent on transformer
        ownership and level that voltage is being
        accepted


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If you do one thing…
   Ohio Edison customers
       Determine power factor savings opportunity
   The Illuminating Company customers
       Do you qualify for a less costly rate?
           Your FE rep may be able to help
   Toledo Edison customers
       15-minute demand window makes load
        management even more critical
           Install interval/real time metering
           Energyprofiling.com

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How to take action

   Presentation GG
       Best practices to reduce your energy bill
        under FirstEnergy & Dominion East Ohio
       Tomorrow @ 2pm




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Presentation available online
   www.BrakeyConsulting.com/presentations




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