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Energy costs for pumping is typically one of the largest expenses in a water utility's operationsbudget. The capability to effectively forecast demand profile and schedule production can bebeneficially used to guide the utility to procure energy products (electricity, diesel or natural gas)in a manner designed to contain costs.Many utilities have procurement flexibility for purchasing energy used for pumping. Potentialoptions may include choice of alternative suppliers, tradeoff between electricity, natural gas, andco-generation, or electricity purchases in a deregulated market. The understanding of, andeffective use of, a properly designed forecasting tool to project near term demand and energyload profiles will give the operations and purchasing managers the updated information requiredto make complex decisions, minimizing the risks and leveraging the benefits. Possible choicesfacing the utility may include:how much electricity should be purchased on the real time market;how much should the utility "hedge" and procure on long term contracts;should in-house generation be used, and if so, when and for how long; and, how much gas should be purchased on the forward market.The capability to leverage a forecasting tool becomes even more critical as the utility employssystem wide optimization strategies to move electrical load in response to pricing to minimizecosts while maintaining defined boundary conditions in the service area. All this must be performed without compromising operational reliability or water quality. As energy tariffstructures and policies vary from region to region, and no two water distribution systems aresimilar, a "one size fits all" energy forecasting tool would not be practical. Any forecasting toolmust be custom designed for the specific application. Includes figures.

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Edition: Vol. - No. Published: 09/01/2006 Number of Pages: 11 File Size: 1 file , 400 KB