BERLIN – In an effort to hit the peaks that will result in reduced costs next year, the town’s electric department has generated 22 times this summer.
Electric Utility Director Tim Lawrence says prior to this year, the most he’d ever seen the town generate was 13 times.
“This is a very unusual summer,” he said. “It’s been very hot.”
According to Town Administrator Laura Allen, the town generated two days in June, 13 days in July, six days in August and one day in September. By generating, the town is contributing to the electric supply rather than simply using it.
“It means our electric utility engines are running and we’re putting power on the grid,” Allen said. “When we’re not generating, we’re drawing from the grid.”
Generating those 22 days resulted in expenses of roughly $90,000 for the town. Doing so, however, is expected to save the town $411,500 in capacity charges next year and $124,000 in transmission charges.
“Otherwise that would fall on the ratepayer,” Lawrence said.
While there’s not a peak every time the town generates, if the town uses its four diesel generators on the days that turn out to be the five peak demand days of the year, discounts will be received in the future.
“Economically it makes more sense to generate for the chance to hit a peak,” Allen said.
Last year, a peak demand day occurred in February on a day Berlin did not generate. That resulted in the town being instructed by the Maryland Public Service Commission to recover $435,876 in power costs. Customer bills were increased and the town was forced to use contingency funds to cover deficit.
To ensure that no peak days were missed this year, changes have been made.
“That’ll never happen again,” Lawrence said.
Berlin’s electric staff relied on both the town’s electric consultant as well as American Municipal Power (AMP) to offer guidance on when the town should generate.
“They look at the forecast and can pretty much tell that’s going to be one of the peak days,” Lawrence said.
While peak shaving typically occurs between 2 and 6 p.m., Lawrence says the true peak doesn’t last that long.
“You’re basically going after a one-hour window,” he said. “You take your best shot at it.”
With input from AMP and the town’s electric consultant, as well as his own employees’ experience, he’s confident the town generated when it should have this year.
“We watch it ourselves at the power plant,” he said. “You’ll see the load climbing. We can pretty much tell what time we need to shut them off.”
Officials say it’s unlikely the town will use its generators again in 2016.