Operational losses savings attributable to load management

The reduction of customer load by means of a utility-controlled switch is discussed that results in a reduction of losses throughout the distribution and transmission systems, including the transformers between the load and the generation sources. Two methods of calculating the losses savings are described that both require that losses be expressed as a function of load. The recommended function is a quadratic equation. One method begins with hourly production loads (the total generation plus purchases minus sales), determines the customer level loads by the application of the quadratic equation to calculate the losses, subtracts the controlled load, and recalculates losses. This procedure is easily computerized and can be used in conjunction with standard industry production costing and generation expansion models. The second method, based on marginal or incremental calculation techniques using the quadratic equation, is moire amenable to one-time applications such as in a specific hour