Plant Engineers & Managers Guide 04

• Title : Plant Engineers & Managers Guide 04 by Albert Thumann, P.E., C.E.M.
• Publish : Marcel Dekker, Inc New York and Basel
• Type Document : pdf 
• Release : December 2002
• Total Page : 32 page
• Size : 0.64 Mb

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Decrypted Contents

Electrical System Optimization
APPLYING PROVEN TECHNIQUES TO REDUCE THE ELECTRICAL BILL
Electrical bills can be reduced by up to 30 percent by knowing the utility rate structure, by improving the plant power factor, by reducing peak loads, and by the efficient use of lighting. This chapter will illustrate these aspects as they apply to the energy utilization program.

WHY THE PLANT MANAGER SHOULD UNDERSTAND THE ELECTRIC RATE STRUCTURE
Each plant manager should understand how the plant is billed. Utility companies usually have several rate structures offered to customers. By understanding the electrical characteristics of the plant, the best rate structure for the plant is determined. Understanding the rate structure also enables the plant manager to avoid the penalties the utility company incorporates into its rates.
As a result of the National Energy Plan, public service commissions are conducting hearings to evaluate proposed rate tariff changes. Industry needs to actively participate in these hearings to make sure their interests are represented.
Some “rate reform” proposals in effect subsidize lower residential electricity prices by raising industrial electricity prices. Two of the reform proposals are as follows:
“Lifeline” rates—a plan to set low, below-cost prices for the first 300 to 500 kWh of electricity purchased by a household in a month.

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