Direct load control-A profit-based load management using linear programming

Conventional cost-based load management ignores the rate structure offered to customers. The resulting cost savings may cause revenue loss. In a deregulated power industry where utilities absorb the ultimate consequence of their decision making, reexamination of load management must be conducted. In this paper, profit-based load management is introduced to examine generic direct load control scheduling. Based upon the cost/market price function, the approach aims to increase the profit of utilities. Instead of determining the amount of energy to be deferred or to be paid back, the algorithm controls the number of groups power customer/load type to maximize the profit. In addition to the advantage of better physical feel on how the control devices should operate, the linear programming algorithm provides a relatively inexpensive and powerful approach to the scheduling problem