. t | t . protection, and transmission line costs Economics o Long-Distance in 1945 were not much higher than after World War I. There has been a tendency Enery ransmission to use larger conductor sizes and to use higher current densities than in the early days of high-voltage transmission. The R. E. PIERCE E. E. GEORGE cost of terminal equipment such as oil FELLOW AIEE FELLOW AIEE circuit breakers, transformers and syn- chronous condensers has increased and is responsible for some increase in the over- THE economic location of steam-elec- or typical conditions, but the results all cost of electric transmission. tric generating stations is receiving give an indication of the need for basic Transmission cost may be placed on a intensified study, not only because of the studies in each particular situation and mileage basis. A study made in 1945 tremendously increasing demand for give a fair approximation of the answer by one of the authors developed a cost electric energy, but because of changes for average conditions. of firm high-voltage transmission ex- that have taken place and are still occur- The study of any particular problem pressed by the formula ring in the relative effect of certain pri- involves many fields of engineering and mary controlling factors. These include it is therefore expedient to analyze only per a +(0.47 Xmiles) changes in the relative effects of location the basic considerations in this paper, 100 and cost of alternate fuel supplies, cost which is devoted chiefly to the trans- of transporting alternate fuels, and cost mission of fuel energy. This paper con- In 1947 Crary and Johnson2 presented of transmission of electric energy. cerns itself entirely with the straightaway data from which can be developed a It has been rather usual practice to hauling of large amounts of energy over similar formula for transmission cost: locate plants at adequate natural water long distances. mills per kilowatt-hour = 0.30± supplies and adjacent to fuel sources or (0.47 Xmiles) transportation, with transmission of the Electric Transmission 100 energy electrically to the load. If the transmission of electric energy produced For a long time it has been generally These formulas show substantial agree- from fuel involved distances in the order considered that the high-voltage trans- ment in spite of independent assumptions of 200 miles, the economics of this prac- mission line is the preferred means of as to line loading, losses, voltage, fixed tice was questionable. Even the eco- carrying energy. This is largely due to charges, and so forth. Both of these nomics of transmitting electric energy pro- its flexibility in distribution and con- formulas are for 50 per cent load factor duced from water power for distances of version rather than any inherent eco- and 1945 price levels in the United States. 200 to 300 miles was not too favorable nomic superiority in transmitting large The unit cost is substantially independ- unless the amounts of power to be trans- blocks of energy on a straightaway basis. ent of transmission voltage, and of the mitted were relatively large and com- Analysis shows that the major factor amount of power transmitted, provided peting fuel costs relatively high. affecting a comparison of costs of high- both are high. All figures for electric This paper presents comparative sum- voltage transmission between 1915 and transmission in this paper (and in the maries of the cost of transmission of 1945 has been a doubling of permissible Crary and Johnson paper2) assume op- energy in the form of coal, gas, oil, and line loading under ordinary operating timum loads and voltages for various dis- electricity. Relative costs of the three conditions. Technical improvements in tances (200,000 kw or more on long fuels near their sources are shown in telemetering, automatic load control) hauls). Figure 7 for the period 1922 to date, high-speed protection and reclosing, ex- Figure 1 shows estimated costs of illustrating the extent to which the citation, lightning protection, and the relationship between*fuel cot has btenfe costs na close co-o nf clscoodaonOtns fco h cornve Paper and distribution committee AIRE trans- mission48-195, recommended by the and approved changed within the last few years. permitted loadings of high-voltage lines by the AIEE technical program committee for presentation at the AIEE Pacific general meeting, From these data it is apparent that close to the stable limits set by steady- Spokane, Wash., August 24-27, 1948. Manuscript consideration must be given, in the state conditions. These increases in submitted June 7, 1948; made available for printing economic choice of steam power plant operating capacities have in large measure R.E. PIERCE is consulting electrical engineer, and location, to present day costs of fulel at offset the increase in investment costs E. E. GEORGE is electrical engineer with Ebasco the nearest sources and present day during the last 30 years.1 Services, Incorporated, New York, N. Y. costs of transmission of the fuels versus Basic transmission line designs have The authors wish to asckrno°wledgeOrtheasitanche the cost of transmitting electricity. The not changed materially in the last 30 preparation of this paper, particularly S. B. Flagg. mechanical engineer and E. P. Kramer, rate con- problem iS analyzed only under average years, except for improved lightning sultant, in the assembly of basic data. 1948, VOLUME 67 Pierce, George-Long-Distance Energy Transmission 1089 Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply. COSTS OF ELECTRIC TRANSMISSION RAILROAD RATES ON COAL OPTIMUM LOADS AND VOLTAGES -SEPT. 1947 ___0___ SEPT. 1947 PRICE LEVEL -- SEPT. 1944 3.69 l 3.690* Bosed | h ] | on dota from Senate Document 82, First Session, l9fh Congress 2-:oX ~ ~ ~ ~ L.O - - 0~~~~~~~~~~ RALRA MILE 00w20 0 300 400 500 600 700 50 100 20 300 40 500 600 700 AIRLINE MILES RIRA IE Figurec1. Costs of electric transmission plant, but there is frequently evidence Figure 2. Railroad rates on coal that the company contemplating con- electric transmission, including fixed struction of a large base load power plant Soefthrasaeinlncdbtuk might do better to seek special contract ande barghe comettesaeion.f Raesedb tuner charges, losses, operation and main- rates, or construt its own pipe line, fav blre conditiionsm ae unper tenance, as ofSeptember 1947 price levels, because the published class tariff may taonrunde teonaverage line, while raes for 50 and 90 per cent load factors. be based on low-load factor operation tonundert The increase in costs of transmission for a mulltiplicity of customers with low under unfavorable conditions might well between 1945 and 1947 was estimated at diversity. As a lower limit of gas and be $.50 to $1.50 a ton higher. about 35 per cent. Expressed by for- oil pipe-line charges for very high-load Due to the spread in rates it is impera- mulas, these costs are factor, large-scale, long-haul operation, tive to analyze local conditions for the For50 per cent load factor the estimates for large pipe lines given final answer in any particular case in mills per kilowatt-hour-=0.54+ herein are fairly representativ7e. These which the freight rate on coal as deter- (0.63 Xmiles) estimates assume private ownership and mined from Figure 2 seems to be com- 100 operation and maximum continuous use. p In coprsno arosmtoso mitting energy. For 90 per cent load factor comnpartisonegof ua loa aethods is m No summary of costs of hauling coal trnpotngeegyanulladfctri by ship or barge iS developed herein, but mills per kilowatt-hour =0.30+ important, because fixed charges are thr is frqetyke.optto e (0.35 Xmiles) greater than operating expenses, except twehalncolbwtradsbti 100 pssibyinthe ase o rai haus. I the tute haul by rail for the inland river and us pulse.oltaif fcmo of- coastal routes. Such situations also Competitive Meanis of Transmitting carriers, the tariffs are assumed to be nesitedaldnlys Energy sufficiently independent of load factor to ncsiaedtie nlss permit comparison on an energy basis in Transportation of Gas Ordinarily, one thinks of hauling the charts shown in this paper. coal by rail and transmitting power elec- Figure 3 is a diagram of pipe line trically as the most typical competitive Transportation of Coal charges for natural gas. Since there are methods. However, this is only a qjmall few common carriers for this service, the part of the picture. In a number of Figure 2 shows a scatter diagram of costs of transportation have been ob- economic studies for electric and gas freight rates of coal, with dollars per net tamned by taking the wholesale industrial utility systems, oil refining companies, ton plotted against railroad miles between schedules of the gas utilities4 and sub- chemical companies, and transportation mine and destination. The indivridual tracting an estimated average cost of systems, various methods of transporting rates plotted are for September 19443 production and gathering at the sending energy have been studied and compared but the solid straight line drawn to ap- end. For this analysis, $.08 per thousand including the following, proximate the average relation between cubic feet has been assumed as the sending 1. Coalrail 2. Coal by ship by ~~~~~~freight rates and mileage includes in- end cost and has been deducted from the creases up to September 1947 but does delivered cost to arrive at the cost of 3. Gas by pipe line not include the increases authorized late tranlsmission. There is a wide spread 4. Oil by pipe line in 1947 and early in 1948. For this in these rates. This might be expected byrtanke 6. Oil b bytatkranmsinln 7. Elcticit particular commodity there is a wide discrepancy in cost of transportation per since rates for both tariff and special contract types of services are included. ton. The spread in rates for any particu- MNost of the tariff rates are for inter- In some cases the published class lar mileage is not due in any great degree ruptible service, requiring oil standby tariffs of common carriers may be as- to the geographic location and consequent service. sumed to accurately represent the cost of difference in territorial level of freight Because most of the gas utilities are transporting fuel in moderate quantities rates,, except possibly in mountainous engaged in retail operations as well as and at commercial load factors to a power areas, such as Virginia and XVZest Virginia. pipe line operation, there is no assurance 1090 -Pierce, George-Long-Distance Energy Transmission AIEE TRANSACTIONS Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply. that the customers' rates reflect the por- unless tanker haul is geographically fea- Comparative Costs of Transporting tion of the total cost assignable to bulk sible. Energy pipe line operation. Some of the rates The handling of oil by rail in tank cars are probably promotional and some of is somewhat of a retail operation as com- Before making comparisons between them are based on long-term supply pared with pipe-line delivery. It is transportation of energy by various contracts which cannot be renewed generally limited to points where there means, it should be pointed out that com- without increase in cost. However, the are no pipe lines and where there is in- parison between transmission costs only long-haul contract rates for interruptible sufficient traffic to justify a pipe line. for gas, oil, and coal are likely to be mis- service to utilities check fairly well with The hauling of oil by tanker is much leading because there is so much differ- the estimated cost for a large gas line cheaper than other means but is limited ence in the costs of these fuels at their under private operation, handling gas at by geography to river and coastal ter- sources. This is particularly true unde maximum capacity at 100 per cent load minals. Probably the best summary of present conditions.6 In the past, it was factor (marked by an X on Figure 3). costs of transporting oil is that given in usual to assume that there was no choice Apparently interruptible rates are nearly the pamphlet "Economics of the Petro- of fuels, or that a definite selection had independent of load factor. leum Industry," by Joseph E. Pogue of already been made, and that the only the Chase National Bank. Two per- comparison necessary was between trans- Transportation of Oil tinent quotations follow. portation of the particular fuel and elec- tric transmission. The picture is very Figure 4 shows a similar diagram of "For liquids available in sufficient volume much different now from that 10 or 15 pipe-line tariffs on crude oil,5 with dollars with a concentrated market, the pipe line years ago. Gas and oil are now trans- per barrel plotted against airline mileage trafnsportation. While capital costs are ported by pipe line in large quantities for between the gathering station and des- substantial, rights-of-way are not expensive, distances over 1,000 miles. Mechaniza- tination. There is comparatively small the operation of the system is automatic to tion of coal mining in the future may spread between the rates for any given a high degree, movement is continuous, and offset increasing labor costs. Fuel oil is mileage, and th averagelineisthere and mileage,the average line is therefore there is no problem of two-way traffic or re- no longer a by-product derived from turn movement of empty facilities. Be- fairly indicative. Most of the rates cause of these advantages and the technical crude oil in a ratio fixed by the natural selected for the graph are those involving proficiency of modern pumping systems, the chemical composition of the oil. Develop- only one pipe-line company for each average cost of pipe line transportation ments in petroleum chemistry now pro- delivery, since this is more representative probably does not exceed four mills per ton- vide considerable flexibility in the per- of competitive conditions. Some of the mile, which contrasts with an average cost ofpimpetlite oandtions. omemon pipe line companies are common ciers om a carriers of movement by rail of approximately eight mills per ton-mile. Thus no natural com- centages ftevrosrfnr products. Thereforeofthe future price of crude oil is cnae the various refinery rdcs without refineries or other operations and petition can persist between oil pipe lines likely to be highly susceptible to technical of necessity they establish tariffs propor- and the railroads." and economic factors in the whole petro- tional to their actual cost of pipe line "Because of automatic loading and bulk, leum industry. The low cost of trans- operation. The load factor applying to the oil tanker represents the ultimate iof porting oil and gas by pipe line as com- typical pipe-line operation is unknown. typial ipe-ineopertio iS nknwn.transportation efficiency, exceeding that the pipe line. Comparative costs per ton- potnoiadgsbyielnesci- pared with the cost of hauling coal by An estimated cost, based on published mile are approximately 8.3 mills by rail, rail together with the current progress in data, for the Big Inch Lines at full 3.2 mills by pipe line, and 1.25 mills by tank converting coal to gas or oil may still capacity and 100 per cent load factor, vessel. In consequence the tanker com- further upset economic relations between assurmng private operation is shown by a petes with the pipe line and diverts as much the three fuels in the next few years. traffic as the geographic pattern permits." the X on Figure 4. In many pipe lines, It should likewise be kept in mind that crude oil and lighter refinery products are The costs quoted previously refer to the present activity in construction of gas handled interchangeably, but ordinary conditions in 1939, but present-day and oil pipe lines is likely, within the next fuel oil for power plant use is too viscous tariffs for 300- to 500-mile pipe-line haul few years, to greatly increase the number for long haul by pipe line. Therefore oil are still around 3 or 4 mills per ton-mile. of localities which have these fuels avail- for power plant or ship fuel requires a By using terminal storage tanks, oil able in quantity at competitive prices. terminal refinery near the power plant, tariffs are made on a volume or weight basis, nearly independent of load factor. Figure 4. Pipe line rates on crude oil Figure 3. Pipe line rates on gas -.oo _ PIPE LINE RATES ON CRUDE OIL PIELINE RATES ON GASSET14 P SEPT 947 - SEPT. 19471947 _ __ X 0 tXD5FECLcoNTRA I_ 1" I I, I_I. I CONTRACT _~ TA_ ~ I 80 .601I s°X; *j y--+; 1~~~~~~~~~~~~ 200 400 600 PpP~IpFN6 800 MiLES 1000 1200 1400 0l 200 400 600 AIRLINE MILES 800 1Q00 1200 1400 1948, VOLUME 67 Pierce, George-Long-Distance Energy Transmission 1091 Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply. Comparisons between coal, gas, oil, and Transmission line costs are almost 1922 to date. Values plotted in this electric transmission are made easy by exactly inversely proportional to load fac- figure are the average yearly realized using the following nominal conversion tor, whereas the charges for pipe line prices of bituminous coal at the mines,7'- factors and efficiencies. transportation as shown by Figures 3 and fuel oil at the refineries in the south Texas 1 barrel of oil = 6,250,000 Btu = 500 kilo- 4 are largely independent of load factor, oil fields10"1 and natural gas at the watt-hours being based on use of storage, substitute wells.9"2"3 Coal and gas annual figures 1,000 cubic feet of gas 1,000,000 Btu= fuel or curtailment of service. are averages for the entire United States, 80 kilowatt-hours It should be noted that the cost of compiled by the Department of Interior. 1 totnofcurol =25000,000 Btu 2,000 kilo- transmitting energy by gas pipe line is Oil figures are from the Petroleum 1 kilowatt-hour = 12,500 Btu (modern steam two or three times as high as the cost of Almanac. The values for the third plant) transmitting energy by oil pipe line. quarter of 1947 are estimates, based on Figure 6 is the same as Figure 5 except spot prices. Old contract prices, which Figure 5 shows costs for transporting that total costs are shown on a capacity largely determine realized prices are still energy by various means with mais per basis instead of an energy basis. considerably lower, but in a rapidly rising kilowatt-hour plotted against airline Figure 6 facilitates comparisons with market, spot prices are considered more miles. It is assumed that pipe-line miles hydro power. There is no choice of indicative of new contracts. From Figure 7 it will be seen that the means of transmission when using hydro tamuthepcostsmlllscents kllowatt-hourBtu, eight.pl the in per per million by power. Such simple and tangible expres- sions for transmission cost easily demon- prices of coal and gas, at the sources, were about equal, on an energy basis, prior to eight. strate that so-called "cheap power" is not 1934. Since that time, the price of coal All data for transportation of fuel are cheap if it has to be transmitted elec- has risen very rapidly and coal now costs commercial rates, using the average lines trically to a distant market. The slope about three times as much as gas for the of Figures 2, 3, and 4. The average for of the electric transmission cost lines in same amount of energy. In those areas gas has been taken as halfway between Figure 5 and Figure 6 gives directly the which were not too far distant from both maximum and minimum rates of Figure 3. difference in cost of transmission for coal and gas sources, the two fuels were The electric transmission costs are the different distances, and is approximately competitive for a long time. This is no same as those shown in Figure 1. These 0.63 mill per kilowatt-hour per 100 miles longer true, and as will be shown later, gas electrical costs reflect a 35 per cent in- or $2.78 per kilowatt per year per 100 can be carried by pipe line a considerable crease in price level from 1945 to Septem- miles, both for 50 per cent load factor. distance and still be competitive with coal ber 1947, compared with approximately At lower load factors these unit cost near the mine. Under such conditions 15 per cent increase in freight rates, pipe differentials per 100 miles would be even the choice of fuels can no longer be made line tariffs, and so forth. greater. It is readily apparent therefore on an arbitrary or noucompetitive basis. Although Figure 5 is based on estimated that with the investment cost of a hydro Prior to 1945 fuel oil cost about twice as averages, it answers in part the basic plant generally greater than for a similar much as coal or gas on an energy basis. question as to how electric transmission size steam plant, hydro power would be This explains why fuel oil was used only compares with other means. At 50 per more costly than steam power by the time for standby purposes, except in a few cent load factor, the high-voltage trans- it was delivered a few hundred miles plants located a long way from the coal mission line and the coal car are generally away. In areas of low fuel cost, hydro and gas fields and yet cheaply accessible competitive for short distances only. power transmitted even shorter distances by tanker from the California, Texas, The situation for base load plants is would be more expensive than steam Mexico or Venezuelan oil fields. Today highly competitive. Load factors of 90 power. the spot price of crude oil is about three per cent or more are involved. At 90 times the cost of coal and about nine per cent load factor (base load operation) Costs of Fuels at Sources times the cost of gas, thus making it very electric transmission may well be as cheap expensive for standby service if such serv- as coal for any distance, and as cheap as Figure 7 shoWs the relation between ice is required many hours in a year. gas for distances up to 100 miles. prices of coal, gas and oil for the years Present conditions in the oil industry are Figure 5. Costs of transporting energy-mills per kilowatt-hour Figure 6. Costs of transporting energy-dollars per kilowatt per yeas S.C COSTS OF TRANSPORTING ENERGY OPTIMUM LOADS AND VOLTAGES 20.CCOSTS OF TRANSPORTING ENERGY S ANY L.F. OPTIMUM LOADS AND VOLTAGES FIXED CHARGES PLUS OPERATING COST fIXED CHARGES PLUS CAPITALIZED 90%LF 4.C See Text For Limitations 4.0 SEPr. 194? SEPT.1947 /OEAIGCS -1See Tex ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~OPERATING COS For Limitaions cr ~~~~~~~~~SEPT.1947 10 0100 200 300 AIRLINE 400 MILES 500 600 70O 04 100 200 300 AIRLINE 400 MILES 500 -600 700t 1092 Pierce, George-Long-Distance Energy Transmissionz AlI EE TRANSACTIONS Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply. COMPARISON OF FUEL COSTS AT SOURCE tC0 SEPT. 1947 COAL (BITUMINOUS AND LIGNITE AT MINES -U.S. AVERAGE) See Text For Limitations 45 NATURAL GAS (AT WELLS - U.S. AVERAGE) OIL (BUNKER C ON SHIPS - TEXAS GULF COAST) 1947 FIGURES ARE ESTIMATED FOR THIRD QUARTER - - - - - - -0 n~~~~~~~~~~~~~~~~~~~~-- -------- 8__.0 ___ OIL FUEL PLUS FF 1EHU R X~~~/ - a. 492 1922 1930 1934 1942 1946 19 0 200 400 600 800 1000 1200 1400 YEARS MILES AIRLINUE Figure 7. Comparison of fuel costs at source 0.34 mill per kilowatt-hour, based on the Figure 8. Costs of fuel plus transmission cost of the alternate gas fuel. (See A on reprte tobe argly ue o sortgesof chart). In this comparison it is assumed huigca yri o n itne(pt repotedto e lrge.y ue o shorage of that electric transmission is at 50 per cent several hundreYd mniles).Y( pipe line and refining capacity. These load factor, limited by the characteris- 6 lcrctasiso sgnrlymc shulimrv whnsfiin .te e tics of the hydro project. Typical m mnoreEeexpternsivre than trasporl teingeergy by comes available and when more foreign charges for pipe-line transportation of gas gas or oil pipe line. Oil fields have pipe lines completed to for utility service (interruptible contracts) 7. The cost of transmitting energy by gas tidewater terminals, have been considered to be applicable, pipe line is several times as high as by oil It therefore appears that the choice of Theoretically, a power plant mi.ght be pipe line. normal fuel and of standby fuel for a located at the fuel source, at the load, or 8. Tanker transportation of oil costs onlly power p1ant julstifies extensive study for at any point in between. about half as much as pipe line transporta- each particular project and that this situa- Practically, a low-load factor steam tion. tion will continue for some time to come. plant should be located at the load (be- 9. The costs of fuel and its transportation cuethe incremental cost of electric to load centers are usually the dominant Delivered Costs of Energy transmission is higher than other means of hydro energy. tranmisson)excet fr ditanes uder 10. Coal and gas are no longer competitive, Figure 8 shows a comparison of present 200 miles with coal fuel from a moulth-of- either close to both sources or several hun- day "delivered costs" for the three fuels, mine plant. Such a plant (with coal dred miles away. Gas may be carried coal, oil and gas. Delivered cost is delivered to the bunkers from mine several hundred miles and still compete with intended to denote only the cost of the cars-no rail switching charges involved) coal near the mine. fuel itself and the cost of its transporta- would have about a half mill saving to 11. Fuel oil is now too high for use except tion. This is obtained by combining the offset the incremental cost of electric for standby service, unless tanker haul is information on 1947 fuel costs at the transmission. A high-load factor power hundred miles distant. source, Figure 7, with that on cost of plant burning coal would have to be 12 Amot-finsea pltisc- transporting the respective fuels, Figure studied in detail to determine the best nomical if the plant load factor approaches 5. location. If feasible, mouth-of-mine loca- base load conditions. The information on Figure 8, delivered tion would generally be most economical. 13. If gas or oil is to be used for fuel, a fuel energy, and Figulre 1, transmission of For oil or gas fuels, pipe line transmis- power plant location near the load will al- electric energy, with certain adjustments sion is usually the most economical, re- most always be most economical. for differences in other production costs gardless of distance or load factor. could be combined in several ways to References show comparative costs of electric energy Conclusions produced from alternate sources and i. PROBLEMS OF 220-KY POWER TRANSMISSION, A. E. SilVer. AIEE TRANSACTIONS, volume 38, transmitted different ways and different 1. TeIihnica1 improvemrents inthe art have 1919, pages 1037-1100. distances to a given load center, in large measure offset increases in cost of 2. EcONOMICS OF LONG-DISTANCE A-C POWER As one example, assume that it is de- electric transmission. TRANSMISSION, S. B. Crary, I. B. Johnson. AIEE sired to compare gas which could be trans- 2. Cost of electric transmission for opti- TASCIN,vlm 6 97 ae 029 ported by pipe line 300 miles to a large mum loads and voltages can be expressed as Web Unite StaNOM es Seat Docmen fRstE 82FICFO, withhydro pwer locted 100 a linear function of power and distance. load cener session, seventy-ninth Congress, Government mie* m11e fro rmtelodcne.By suer- -'3. Costasofa fuel transportation energy and theloa cener. sue pressed linear function of can be ex- 4. GAS Office, Washington, D.Statistical Bureau, Printing RATE SCHEnULES. C., August 1, 1945. imposing on Figure 8 a line representing distance. American Gas Association (New York, N. Y.). the cost of electric transmission as shown 4. Elcti trn .sina o odfco 4. Eectlc ranInlslo atlowtoa fator 5. DIGEST OFNational LINE RATES ON C RUDE PE;TROLEUM. PIFE Petroleum Association by the dashed line on the chart, it is is competitive with hauling coal by rail for (Washington, D. C.). determined that, aside from differences in only short distances. 6. PROGRESS IN THE TRANSFORMATION OF ENERGY, g P 5. Elctric trnsmissionat high oad fac- N. Y.) Septemher 1947, volume 65, number 3, penses, the hydro energy would be worth tors (base load plants) is competitive with pages 207-12. 1948, VOLUME 67 Pierce, George-Long-Distance Energy Transmission 1093 Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply. 7. MINERAL RESOURCES IN THE UNITED STATES, based upon fixed and operating costs of in view of his long experience and interest 1930. Bureau of Mines, United States Depart- facilities necessary to provide electrical in this subject. ment of Commerce, Washington. D. C. transmission, and cost of hauling coal by The authors agree that pipe line tariffs 8. MINERALS YEARBOOK, 1945. Bureau of Mines, freight, based upon existing tariff schedules, and freight rates have been used as costs in United States Department of Interior, Washington, D. C. may each be cost to the ultimate consumer, the -absence of any better information. but they are not strictly comparable costs 9. Preprints and press releases, Bureaui of Mines, However, while the paper calls attention to United States Department of Interior, Washington.and certainly are not comparable when one these instances, it might be noted that the D. C. considers the problems that may face the figures for gas pipe lines and oil pipe lines, 10. THE PETROLEUM ALMANAC, 1946. National common carriers of the country as a result based on published tariffs, have been com- Industrial Conference Board, New York, N. Y. of continuing rises in cost of labor, materials pared with estimated costs on modern pipe I1. NATIONAL PETROLEUM NEWS. National and supplies and in cost of railroad facilities. lines now in operation or under construc- Petroleum News Publishing Company, Cleveland, Some of the conclusions of the authors, tion. Most of the electric utilities inter- Ohio. therefore, can be accepted and others need ested- in securing transportation of fuel are 12. MINERAL RESOURCES OF THE UNITED STATES, considerable modification. It is particu- more likely to depend upon concerns en- 1925 and 1929. Bureau of Mines, United States larly important to point out that broad con- gaged in this business than to enter the busi- Department of Commerce. Washington, D. C. clusions, based upon averages, are liable to ness themselves. Therefore, tariffs rather 13. MINERALS YEARBOOK, 1939, 1943 and 1945. lead to grave error, if they are not accom- than costs would usually govern. Bureau of Mines, United States Department of In- p i terior, Washington, D. C. panied by specific studies for each particular It is felt that the figures of Sporn showing project. As an illustration, Figure 8 of the an average 1947 fuel cost per kilowatt-hour paper, representing September 1947 data, of 2.14 mills are not too far out of line with shows a typical fuel cost in mills per kilo- the data in our paper, considering that the watt-hour for three fuels, one of them being costs Sporn quotes are undoubtedly based coal coming in by railroad in a range of on contracts which would lag behind spot LDiscussion distance from zero to 1,400 miles. For coal prices in a rising market. Whether one fuel, the figures vary from 2.8 mills for at- buys coal or mines it himself, his fuel costs Philip Spom (American Gas and Electric mine location to 6.7 mills for a distance of for an additional plant requiring new fuel Service Corporation, New York, N. Y.) 1,400 miles. This is based upon an average sources today will of necessity be much The authors are to be complimented on the performance of 12,500 Btu per kilowatt- higher than average figures for an existing work that they have done on averyimpor work tha on a very impor- hour. However, on an actual system the wihe system. weighted average data for the year 1947, Since the preparation of the paper in 1947, taontmicand soubject. Thenergy tant and difficult subject. The relative difficult sources o energy,' where approximately 10,000,000,000 kilo- economics of different f of ' watt-hours were generated by coal burning there have been extensive changes in the prices of fuels. These changes do not con- each transmitted by the best technical means available, needs further discussion capacity, with coal delivered distances up tradict the general conclusions. However, mands neesu fsure availabe, . to 200 miles, and with plants having per- formances running from 10,200 Btu to ap- in the comparison in the second paragraph work needs tobednet on the deveiopment proximately 30,000 Btu per kilowatt-hour, under Costs of Fuels at Sources, the figures b toenderldgeconomthe andelopent work needs owalttes ner. econshan ten the following weighted averages figures given would read about as follows if brought up to the third quarter of 1948: tialities are. Thne authors have madle a prvie. contribution of note in that direction, but a prevailed: great deal more work still remains to be Btu per kilowatt-hour, 13,689 Approximate Costs of Power Plant Fuels at done. The authors have, however, perhaps Fuel cost per kilowatt-hour, 2.14 mills Sources under-estimated the remaining gaps. A -_-_ point, too, that needs to be remembered is Gas $.10 per million Btu that in their studies, costs and tariffs have R. E. Pierce and E. E. George: The com- Coal $.20 per million Btu been mixed. Thus, transmission line costs, ments of Sporn are appreciated, especially Oil $.40 per million Btu 1094= Pierce, George-Long-Distance Energy Transnzission AlIEE TRANSACTIONS Authorized licensed use limited to: UNIVERSIDADE DE SAO PAULO. Downloaded on March 18,2010 at 13:31:50 EDT from IEEE Xplore. Restrictions apply.