Pikeville utility load management - Wayne-Wilson News Leader, Fremont, NC

31 January 2008 — As the electrical upgrade in Pikeville progresses onward, town leaders met this week to discuss using load management to further increase cost savings on the system.

Load management involves installing switches that would allow the town to automatically shut off power flow to certain appliances during periods of high electrical demand. The switches, which are installed on electric water heaters and heating and air conditioning units, are controlled by radio frequencies.

Allen Williamson of Electricities spoke to the board about the benefit of using the devices. He explained that the program typically offers some benefits for both the customer and the town. Customers would receive a deduction in their monthly bill from the town due to decreased use. Most municipalities also offer a credit of a few dollars per month if customers agree to use the device.

But the biggest benefit, he said, is for the town. The devices decrease the load demand during peak hours, which decreases the charges the town incurs to supply the electricity. That allows the town to make a bit of a profit on electrical charges, if it chooses to do so.

The cost per home of putting the device in a home would be around $250 per household, and the town would foot the bill for that cost. Mr. Williamson added that with the savings provided by the devices, they would pay for themselves in two to three years.

When asked if he thought the town should wait to gather data on the effectiveness of the new electrical system before considering load management, Mr. Williamson said the time to begin is now.

“You should do it immediately,” he said, adding that some homes in town already had the devices. However, those homes are not a substantial percentage of the homes the town serves, which means that the devices aren’t incurring visible savings for the town.

The board agreed that incorporating load management was necessary for the town at some point, but disagreed on exactly when and how it should be incorporated.

Commissioner Vance Greeson, who already has a device installed on his home, said the town should begin immediately. He also thought that the town should require all users to have the devices installed.

“Even if you survey to gather interest, you’re going to have people who want it and people who don’t,” he said.

Commissioner Lyman Galloway said the town had been looking at the option for quite a while, but did not have the budget for both the upgrade and installation of load management devices, so they opted to pursue the upgrade first. He said he thought the town should get data on the effectiveness of the new system before looking at load management.

Commissioner Dennis Lewis said he agreed with using load management, but not with the idea of making it mandatory for all users.

“Is it the proper role of government to tell people that we are going to put this on their house?” he questioned.

Mayor Herb Sieger said that he viewed making the device mandatory in a category similar to adding trash pickup to homes in the city limit. Citizens may or may not want trash pickup, but they were told at some point they had to pay for it.

He also pointed out that the town could also look at other options to encourage participation. He noted that the town of Fremont made devices optional, but used another incentive to encourage participation – a difference in bill late fees. Citizens with the devices have a late fee of $10, while citizens without have a late fee of around $50.

“That would encourage you to use the switch, especially if you’re habitually late,” he said.

If the town chooses, it could allow citizens the option of having their water heaters and climate-control devices switched off for 100 percent of the peak period, or to cycle on and off, cutting use for 20 percent of the peak period.

The board agreed to put inserts about load management into next month’s electric bills to survey interest in the system. Mayor Sieger also recommended that the town look at possibly taking a first step of requiring the devices for new construction, but no vote was taken on that possibility.

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Issue of 31 January 2008

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