A production costing methodology for evaluation of direct load control

Direct load control (DLC) is a form of load management in which portions of the system load are under the direct operational control of the utility. Thus, the load can be modified, within limits, to match the available generating capacity, thereby minimizing events of uncontrolled load loss. It is shown that operating cost reductions produced by exogeneous models of DLC are different from those produced by dynamic models of DLC. The dynamics of DLC and an equal incremental cost scheme are described and then coupled with a Monte Carlo simulation model of the operation of thermal-based electric utilities. Various production cost measures produced by exogeneous and dynamic models of DLC are presented and discussed