Build a Little – Save a Lot!
In today’s deregulated and ever-changing retail electric service provider environment, businesses must be constantly looking for ways to not only get the most cost-effective electricity contract from their retail electricity provider, but they must also look for innovative and new ways to cut their overall electric power bill.
Recently, one of Shermco’s industrial customers took advantage of several viable options to reduce their overall power costs – utilizing Shermco’s knowledge and expertise of power system design to integrate cost-saving measures to reduce their monthly electricity expense.
Operating as a significant load with the local utility without any power factor correction and purchasing power at a 4.16 kV on a distribution rate plan schedule, the industrial facility was paying more for electricity than they should. Shermco’s Engineering group evaluated the situation and determined that significant cost savings and improved system stability and safety could be realized if the facility:
- Purchased power at a 138 kV (Transmission) rate
- Corrected their poor power factor
- Implemented a Load Acting As a Resource (LaaR) program
- Modernized their incoming line switchyard equipment
After analysis, it was determined that the installation of a new 138 kV switchyard with dual feed transformers had an attractive return on investment, with less than a two year payback. The decision was made to move forward with the project in February 2006, and overall system design and procurement of the necessary components commenced at that time.
Utilizing Shermco’s strategic partners, orders for the necessary power system components were placed. The major items for the project included:
- 138 kV outdoor bus assembly and towers
- 138 kV motor-operated switches
- Two 138 kV power transformers
- Primary metering transformers
- Secondary 4.16 kV metal-clad switchgear assembly
- Secondary power cable and duct work
- Primary protection, control, and metering panels
- Substation battery system
- Two 4.16 kV multi-step power factor correction assemblies
Shermco engineered the installation and provided the overall system layout. By utilizing local electrical contractors for the installation and using Shermco’s field service operations for acceptance testing and commissioning of the equipment, the new switchyard was installed in just a few months. Additionally, short circuit, coordination, load flow and arc flash studies were performed which improved the reliability and stability of the facility as well as improved the overall safety of the power system.
The equipment was installed and ready to energize ahead of schedule in August 2006. After the utility finished the necessary reconfiguration of their metering and existing power system, the new system was installed and the utility 4.16 kV plant feeder disconnected. The new 138 kV substation and associated equipment was connected and energized during an 18-hour outage on 15 November 2006, and the industrial facility began to pay for power at the transmission rate and a corrected power factor of approximately 0.98, thereby eliminating the power factor penalty from the monthly electric bill.
So by building a little in a fairly short period of time the customer was able to save tens of thousands of dollars each month on their power bill, along with the added benefit of more reliable system (with redundant transformers) and a safer system (with modern and remote operated equipment).
Build a little – save a lot. Call on Shermco for your electrical power system needs.