Application of a peak shaving generator in pipeline service

Every measure must be taken to control electric power expense because it plays such a large role in the operating expense of a petroleum products pipeline. This effort is made more difficult by the fact that electric utilities are continuously revising and introducing new rates. These rates may serve to benefit the customer but also are set to more closely match utility revenues to expenses. Many utilities have recognized that their expenses are directly proportional to their peak loads. Consumers of electric power must also recognize this, and should be prepared to minimize the impact on their expenses. Peak loads are expensive when utilities are running at or near capacity. This forces utilities to invest in more generation equipment, or purchase power from a neighboring utility. This expense makes it necessary for utilities to charge a premium for peak usage. Special rates and/or incentives are offered to customers that reduce their usage during peak demand periods. This paper presents one of Plantation Pipe Line Company´s efforts to reduce peak demands and therefore expenses, through the installation and operation of parallel generation equipment