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Co-op manages power for savings — Members benefit from reduced costs

Mervin Coker, a Palmetto Electric substation technician, takes notes at one of the co-op's 25 substations. These electrical facilities contain equipment for controlling the flow of electricity from power supplier to user. Palmetto Electric also uses fiber optic cable to enhance service by improving communications between its substations and district offices.

'Fiber' expands substation
communications capabilities

    Palmetto Electric Cooperative uses fiber optic cable – "fiber" for short -- to communicate with substations and to connect its four district offices. To reduce costs and thereby save its members money, the co-op partnered with local telecom carriers to install new lines and to share existing lines constructed by one of the partners when this is beneficial. If there is no joint benefit, the co-op constructs lines on its own.

    "The purpose used to be just to communicate with the substation to run the SCADA system," says Berl Davis, vice president of engineering and operations. (SCADA stands for Supervisory Control and Data Acqusition.) "Now there are more things to do, and you need bigger bandwidth to do them. The best way to achieve this is with fiber." Palmetto is using the additional bandwidth for AMR applications and to add security and video capabilities to their substations.

    The switch from microwave to fiber improved communications speed and capacity and reduced maintenance, such as dish and tower repairs due to lightning strikes. The new system and other Smart Grid components (i.e., microprocessor controls) also provide diagnostic information that was not available before. "There is a gain in productivity, because we do not have to dispatch as many people," Davis says. "The information helps us diagnose and trouble shoot issues and discover problems before an outage occurs."

    The fiber optics, being non-conductive, are immune to lightning strikes. Members reap the benefits with faster response in outages and, indirectly, through reduced operations costs. "We are all working together to minimize costs," Davis says.

Electric Utilites can slightly reduce the voltage flowing through their substations and still maintain the quality of power distributed to their consumers.

"It's called conservation voltage reduction [CVR]," said Berl Davis, vice president of engineering and operations at Palmetto Electric Cooperative, during a recent panel discussion sponsored by the Cooperative Research Network.

With proper planning and vigilant monitoring, the operational technique can be a useful addition to a load management program. Palmetto Electric realized a savings of nearly $1.5 million in 2010 through the controlled reduction of voltage by 3.5 percent as part of its demand-side management program, he said.

Palmetto Electric's CVR program involves all 25 of its substations. It was designed to comply with Rural Utilities Service guidelines on power quality, and meet American National Standards Institute requirements mandating 120 volts, plus or minus 5 percent, throughout its system.

"That works out to be 114 volts to 126 volts," Davis said. The slightly lower voltage is within the voltage tolerance range for consumer appliances, electronics or commercial devices.

"Most motors are rated at 115 volts, so when you lower the voltage a lot of motors will actually run more efficiently," said Davis. "You won't have any impact on power quality, but you'll reduce your demand, reduce your energy and reduce your losses."

Distribution co-ops that routinely get advance notice of peak demand projections from their G&Ts can use the technique for peak shaving purposes, said Davis. Palmetto Electric currently uses CVR as part of its load management program, which includes control of about 36,500 water heaters. The co-op also has about 75 interruptible accounts that can be suspended to manage demand.

"For every 1 percent change in voltage reduction, you're seeing an average of 0.8 percent reduction in kilowatt load," said Davis, citing Electric Power Research Institute data. The National Rural Electric Cooperative Association's Cooperative Research Network has partnered with EPRI and the National Electric Energy Testing, Research and Applications Center on CVR projects.

Derrill Holly wrote this story for the Electric Co-op Today newsletter, published by the National Rural Electric Cooperative Association, of which Palmetto Electric is a member.