Application of net present value analysis to cost justify the conversion of a 4 kV distribution system to 23 kV

Author

Pierre, Donald Stephen, Jr.

Author_Institution

Alabama Power Co., Theodore, AL, USA

fYear

1992

fDate

12-15 Apr 1992

Firstpage

346

Abstract

A discounted-after-tax cash flow analysis is applied to the investment costs and loss savings related to converting a 4160 V distribution system to 22860 V. The technique used a spreadsheet program to perform the financial calculations which enabled rapid analysis of several substations in a short period of time. The ability to vary cost and benefit estimates and the underlying financial assumptions in the model are strengths of the spreadsheet approach. Evaluation of the 464 kV substations in this study revealed that the proposed conversion is marginally justified by the value of the eliminated losses

Keywords

distribution networks; economics; power engineering computing; spreadsheet programs; substations; 22860 V; 23 kV; 4 kV; 4160 V; discounted-after-tax cash flow analysis; distribution system; financial calculations; investment costs; loss savings; net present value analysis; spreadsheet program; substations; Copper; Costs; Equations; Investments; Power generation economics; Senior members; Spreadsheet programs; Substations; Transformer cores; Voltage;

fLanguage

English

Publisher

ieee

Conference_Titel

Southeastcon '92, Proceedings., IEEE

Conference_Location

Birmingham, AL

Print_ISBN

0-7803-0494-2

Type

conf

DOI

10.1109/SECON.1992.202367

Filename

202367