Discussion on “methods of keeping down peaks on power purchased on a peak basis” (Tynes), Detroit, Mich., June 23, 1914. (see proceedings for June, 1914)

Rudolph Tschentscher: Power contracts, as you all know, are usually made on a peak basis, and the question of the reduction of these peaks is a most important one. I believe it is desirable to emphasize the point Mr. Tynes has mentioned, namely, that the reduction of peaks is of material benefit to the power generating company. Paul M. Lincoln: This point that Mr. Tynes has raised is an exceedingly important one. Wherever power is taken from a hydraulic plant, the maximum demand method of charging is a logical one; no question about it. This is particularly true in the case of the hydroelectric plant where the water is not limited, such as the Niagara Falls plant. It does not matter to the power company whether the power is taken for 15 minutes, or one minute a day, or for the 24 hours continuously, it is the maximum demand which dictates the amount of the power bill, because the ability of the power company to supply power is limited by the output of the prime mover or of the generator. The fact that the power is taken continuously 24 hours a day merely means that the water is running through the wheels for that length of time, instead of running over the spillway. It is therefore perfectly logical for the power company to insist upon a system of selling on the maximum demand basis.