On a very hot Aug. 11, 2011, energy usage by Lincoln Electric System customers rose to 786 megawatts.
This was the utility's highest usage ever and 180 megawatts higher than peak times in the winter.Ìý
LES must plan for those peak periods, to ensure there is enough electricity for all those humming air conditioners on top of manufacturing and other major drains on the local power grid.Ìý
As part of an effort to reduce peak loads, staff at LES are proposing a program in which Lincoln's largest users of electricity could agree to have their service interrupted during peak load times, when energy use reaches all-time highs, in exchange for lower monthly bills.Ìý
The interruptible service program would be available as a rider for at least some of the 280 firms in the light and power class of users.Ìý
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The program would benefit LES by helping reduce future costs that accompany those power-used peaks.
“What really drives our costs is building new facilities" to make sure LES can handle the peak load times, said Zachary Wilkerson, the utility's supervisor of rates and analytics.
And the program would benefit participating power users by reducing their monthly bills, Wilkerson said.
The interruptible service program is part of a number of changes being proposed by LES staff that must eventually be approved by the LES board and then by the Lincoln City council.
LES staff hope to begin the program in October, making it available for summer 2019.
Companies could decide what portion of their load is interruptible in order to maintain a minimum amount of power, Wilkerson said. Each company would then receive credit on its monthly bill for the interruptible portion.
The year-round credit is based on the assumption that the company’s power usage is not going to drive the need for another generating station, because they won’t be contributing to peak usage.
Companies could be asked to have their electric service interrupted up to 20 times each year for up to four hours each time. They would be given at least 30 minutes advance notice, but generally the notice would be several hours, Wilkerson said.
Companies that fail to allow an interruption would receive a penalty on their bill, allowing LES to recover costs associated with peak usage and providing a deterrent for customers who might want to game the system, Wilkerson said.
LES has peak periods each month, but the biggest peaks come in the summer when air conditioning usage is high. In the winter, top usage can be anywhere from 450 to 600 megawatts, but in the summer it sometimes climbs above 700 megawatts, said LES spokeswoman Kelley Porter.Ìý
For perspective, Porter said, an average home uses 3 to 5 kilowatts. A megawatt is 1,000 kilowatts.
LES is also offering another program for large energy users, called the curtailment rider, in which companies that allowed their energy to be curtailed during summer peak times received a check at the end of summer.
LES is also proposing several programs intended to promote economic development. The utility hopes to create a new rate class for its very largest customers, which use 20 megawatts. These companies could build their own substations, and in exchange, LES would not charge them for facilities costs.Ìý
A very similar program attracted the Facebook data center to Omaha, Wilkerson said.
LES is also proposing an economic development rider for large power users that includes declining discounts over five years and a penalty if a company leaves within the first 10 years. The rider would be available to new or expanding companies.