Vermont City Electric

Introduction

  • Case authored by Jonathan Potter and Professor Robert M. Freund.

  • Focus on quantitative approaches to energy conservation issues.

  • Some data invented for the case study purposes.

  • Licensed under Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 Unported License.

Background on Vermont City Electric (VCE)

  • Established in 1905 to provide cost-effective electric power to Vermont City.

  • Current customer base:

    • 16,000 residential accounts

    • 2,845 small commercial customers

    • 784 large commercial customers

  • Service area covers approximately 16 square miles.

  • VCE leverages Demand-Side Management (DSM) for energy efficiency.

  • Budget cuts on DSM programs due to the 2008 economic downturn necessitate optimization of current DSM efforts.

Demand-Side Management (DSM) Overview

Definition and Purpose

  • DSM reduces energy use and shifts consumption away from peak demand.

  • Emerging as an alternative to constructing new power plants, which are costly and often opposed by residents.

Importance of DSM for VCE

  • Since 2000, VCE has pioneered DSM to decrease energy use.

  • Customer preference leans toward cost-effective energy efficiency over new supply sources.

  • Increasing energy prices encourage the drive for efficiency.

  • Commitment to carbon reduction aligns with global climate change efforts.

Energy vs. Power

Power Definition

  • Power is the instantaneous usage of electricity (measured in watts or megawatts).

    • Example: A 70-watt light bulb uses 70 watts of power.

  • Peak demand is the maximum power demanded in a specific period.

Energy Definition

  • Energy includes both power and time, measured in watt-hours or kilowatt-hours.

    • Example: 210 watts used over one hour equates to 210 watt-hours.

Conceptual Analogy

  • Energy vs. power is analogous to distance vs. speed:

    • Distance = Speed x Time
      - Energy = Power x Time

Growth in Power Demand

  • Population growth in Vermont City: Predicted 0.52% annual increase.

  • Per capita electricity growth expected at 0.22% annually.

  • Shift in residential energy usage:

    • From primarily heating (1980s) to increased demand from cooling and electronics (2000s).

Load Duration Curve (LDC)

  • Visualizes electricity use throughout a year, identifying daily and seasonal variability.

  • Peaks correspond to increased demand periods, typically during summer afternoons.

  • LDC analysis aids in understanding system supply needs across different hours and days.

Supply of Power Sources

Categories

  1. Power Generation Facilities

    • McNeil Generating Station (wood-powered, sustainable).

    • Vermont City Electric Gas Turbine (high-cost, carbon-intensive, used for peak loads).

  2. Medium-Term Contracts

    • Current providers include NYPA, NYSEG, and VEPPI (primarily hydro-electric, low carbon footprint).

  3. Wholesale Market Purchases

    • Prices fluctuate based on market demand with varied sources (e.g., natural gas, coal, nuclear, renewables).

Anticipated Cost and Emission Data

  • Detailed power source capacities, costs, and carbon emissions for 2009.

  • Incremental cost expectations and emissions trends impacting long-term strategies.

DSM Programs Overview

  • VCE has nine DSM initiatives aimed at improving energy efficiency, including:

    • Business and Residential Programs targeting new constructions and renovations.

    • Consumer rebate offerings for energy-efficient appliances.

    • Specialized commercial support for heating, cooling, and outdoor lighting.

Financial Considerations

  • Each DSM program has associated costs and projected energy savings over a six-year period, key for assessing budget impacts.

  • Budget limitations imposed for 2009 DSM expenditures.

Optimization Analysis

Key Questions for Daniela's Project

  1. Which DSM programs should be retained or eliminated to fit budget restrictions?

  2. What is the total carbon impact of DSM strategies?

Modeling Requirements

  • Development of a mixed-integer optimization model for the least-cost electricity supply plan from 2009 to 2014, assessing DSM impacts.

  • Detailed steps for optimizing electricity supply, tracking carbon impacts, and evaluating program efficiencies.

Conclusion and Future Considerations

  • Examination of the impact of potential carbon taxes on VCE operations, particularly in the year 2014, may alter demand and emissions strategies.

  • Emphasizes the importance of flexible and responsive energy management practices in light of changing regulations and economic conditions.