Daily power system fuel optimization using a network flow algorithm

The problem of minimizing the cost of producing electric power has become more important and more difficult with the fluctuations in fuel prices and increasing complexity of the fuel market. The authors describe the development of a computational tool to aid operations planners in scheduling fuel contracts. A network flow algorithm called the out-of-kilter algorithm has been implemented to find the optimal schedule of fuel acquisition and usage from available fuel contracts in a daily time-frame. This algorithm is coupled to an economic dispatch routine via a rescheduling algorithm which develops the fuel prices to be used in the economic dispatch. Together, these blocks can be used to simulate power system operations for planning studies, develop the fuel prices to be used in the online economic dispatch, and recreate operations for postoperational evaluation. This fuel scheduling program has been tested using several fuel networks and also for a 20-generator, 12-contract system previously obtained from a utility