Question

You are the energy manager for a food company that operates 5 milk cheese processing facilities. The owners have asked you to evaluate aggregating the usage of the 5 facilties together and putting out a RFP (Request for Proposals) to energy providers to bid on supplying the power for all 5 of the facilities as a single contract for one year to see if they can lower the electricity cost. Each facility has identical demand pattems as follows (one facility) given the present mode of operation: Coumn Heaaings. Month Name, kWh/facility, Total kWh for 5 Facilities/Month 4. Using a spreadsheet, figure out how much money the TDSP charge is each month (Jan, Feb, March, etc) for the 5 facilities in total. Column Headings: Month Name, Customer Charge, Peak Charge, Energy Charge, Sales Ta, Total (S) lanr Coisumpion Patte Midnight to 6 am. 300 kW 6 am to6pm.-500 kW 6 pm. to Midnight 200 kW 5. Using a spreadsheet, calculate the amount of the energy/generation portion of the bill only (not TDSP charges) for each month of the year (Jan, Feb, March, etc) for the following options The Transmission and Distribution Service Provider (TDSP) rate regardless of which Retail Energy Provider (REP), broker or aggregator you use is as follows: Column Headings Month Name, Peak kWh Amount, Peak kWh Rate(S/kWh), Sales Tax, Total S (You need separate on and off peak kWh Amount and Rate columns for Option 3) a. Option 1 TDSP Transmission &Distribution Monthly Charges: b. Option 2 Customer Charge: S25 month per metrer Monthly Peak Demand Charge: $10.00 peak kW per month meter Enerv Chare: (all hours) S0.03kWh for all energy at all facilities Power Factor Penalty: None c. Option 3 6. What is the total cost of the overall electricity bill for the 5 plants for the year on each of the three options? a. Option 1 Remember..you pay your contracted electricity supplier the total of the UDC T&D chargesplustecontractedenergy generationcharges. Thestate wants their6%sales tax of your MONTHLY bill total (TDSP+Supplier). b. Option 2 c. Option 3 7. Which of the companies/options is the lowest cost option for the next year? 8. If you chose Safe & Easy, what could you do to save money compared to the total Bids from competitive REP's are received and there are several viable options available including a new proposal from your curent supplier "Safe &Easy Company" estimated electricity cost you came up with in 6a? 9. What are the disadvantages to you of staying with Safe & Easy? 10. If you chose the Traders R Us proposal, what could you do to save money compared Option 1 (Current Supplier): Safe &Easy Company This company offers the energy generation portion of the billat a fixed price for one year of S0.08kWh (all hours). They will take care of arranging your supply, aggregating the bills and sending you a bill each month. You pay them and they pay all the other suppliers. You lke the fact that the S0.08 is easy to remember but you notice in the contract you must pay for a minimum 250,000 kWh every month even if you don't use that much. to the total estimated cost you came up with in 6b? 11. What are the disadvantages of choosing the Traders R Us proposal? 12. If you chose the EcoMind proposal, what could you do to save money compared to Option 2: Traders RUs This company offers the energy generation portion of the bill at a cost based on the fitures market forward price curve plus a 15% premiumtransaction charge. Here's how it works, each month, the price you pay for energy will be based on the present futures the total estimated cost you came up with in 6c? 13. What are the disadvantages of the EcoMind proposal? 14. Which of the three options would you choose and why?

Answer 1

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