Load Management Economics with Pumped Storage

A general mixed-integer programming model of an electrical power generation system with several load and generation centers is formulated and used to analyze the impact of different levels of load management on the New York State Electric and Gas Corporation power system. The potential of load management for reducing the need for more power plant capacity and expensive fossil peaking fuel is well-established. For various levels of load management, the analysis provides quantitative estimates of the magnitude of reduction in systems average costs and also the degree of reduction in the role of pumped storage in the system. Results from the model are used in a benefit-cost analysis of different degrees of metering as a potential load management measure. The general model and analytical approach is suitable for application to other power systems that include pumped storage facilities.