SOP 410.02: Electric Cost Optimization During Peaking Period (RTP Program)

|GEORGIA DEPARTMENT OF CORRECTIONS
Standard Operating Procedures|Col2|Col3|
|---|---|---|
|`Functional Area: `
`SUPPORT SERVICES`
`/ENGINEERING AND`
`CONSTRUCTION SERVICES`|`Reference Number: `
`IVK01-0001`|`Revises`
`Previous`
`Effective Date:`
`NEW`|
|`Subject:`
`ELECTRIC COST OPTIMIZATION`
`DURING PEAKING PERIOD (RTP`
`PROGRAM)`|||
|`Authority:`
`WETHERINGTON/FERRERO/BROWN`|`Effective Date:`
` 6/01/00`|`Page``1`` of`
`4 `|

I. POLICY:

   Each Georgia Department of Corrections facility on Georgia
   Power’s RTP (Real Time Pricing) rate shall implement the
   following procedure to minimize extreme costs during high   priced periods while not affecting the integrity of their
   power supply.

II. APPLICABILITY:

   Engineering and Construction Services, GDC Communication
   Center and the following GDC facilities currently on Georgia
   Power’s RTP rate: Augusta State Prison, Georgia State Prison,
   Hancock State Prison, Macon State Prison and Smith State
   Prison.

III. RELATED DIRECTIVES:

   None

IV. DEFINITIONS:

   A. Customer Base Line (CBL) - Each facility on the RTP rate
      has an established Customer Base Line. Electricity used
      up to the CBL is billed at the standard published rate
      (Power and Light Large (PLL)).

   B. Real Time Pricing Rate (RTP) Rate - All additional load
      above the CBL is billed at Georgia Power’s real time
      price to generate electricity.

      The electric load above the CBL, sometimes referred to as
      incremental load, is the only load exposed to the

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`IVK01-0001`|

      fluctuating pricing on RTP. Throughout the winter months
      (October through April) the RTP prices have historically
      been extremely low; the shoulder months of September and
      May have been moderate; while the summer months of June
      through August experience extremely high prices.

      Each of GDC’s facilities on the RTP rate has enough
      generator capacity to fully cover the amount of load
      being purchased at the volatile RTP prices in the summer.

   C. Strike Price - This is a price that is used to determine
      whether a generator should be utilized. Any time RTP
      prices climb above this predetermined price and assuming
      the use of generators does not affect the facility
      adversely for other considerations, then the generators
      should be utilized. Whenever RTP prices remain above 25
      cents* per kWh for a sustained period of time (over four
      hours) then the generators should be used.

      1. Engineering and Construction Services has determined
         25 cents per kWh is a good conservative estimate of
         the cost of running a generator. After the initial
         phase of this program further evaluation of
         generator operating costs may result in a change in
         the strike price. The objective is to calculate the
         lowest possible strike price because greater savings
         can be realized by responding to lower RTP prices.

V. ATTACHMENTS:

   None

VI. PROCEDURE:

   A. The Utilities Project Manager for GDC’s Engineering and
      Construction Services section will identify capacity and
      loading of generators (in terms of kW) at each RTP
      facility and compile a list of each facility’s specific
      load.

   B. The Utilities Project Manager will verify that each
      generator is optimally loaded to maximize protection from
      high prices on RTP rate. Any shortfalls will be brought
      to the attention of the appropriate Regional and Facility
      Maintenance Engineers for correction.

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C. The Utilities Project Manager will evaluate the previous
   summer’s actual demands compared to the respective
   customer base lines to determine any changes in
   incremental load and therefore generator requirements for
   the upcoming summer peak period.

D. The Facility Maintenance Engineer will verify proper
   operation of each generator at each location through
   typical testing and report any problems to the
   appropriate Regional Maintenance Engineer and the
   Utilities Project Manager for correction.

E. The Facility Maintenance Engineer (or designated
   alternates in his absence) will serve as the facility’s
   primary contact for coordinating generator use and
   compliance. The Facility Maintenance Engineer will
   provide the Utilities Project Manager with contact
   telephone and fax numbers.

F. During the summer months, the Utilities Project Manager
   will monitor Georgia Power’s RTP hourly prices posted by
   4 PM to determine if generator operation is necessary for
   the next day based upon the established strike price.

G. The Facility Maintenance Engineer should verify the
   facility has an adequate supply of diesel fuel for its
   generator(s).

H. The Facility Maintenance Engineer should test generators
   weekly even during non-peaking conditions and report any
   problems to the Warden, Regional Maintenance Engineer and
   Utilities Project Manager.

I. If the RTP hourly or daily average price warrants a
   designated load-shed period to be called the next day,
   the Utilities Project Manager will determine the
   appropriate generator run time and communicate the
   designated load-shed period by 9 AM on the given day to
   GDC’s Communication Center. The load-shed period will be
   referred to as the RTP Power Conservation Mode .

J. The Communications Center will contact the Facilities
   Division Director, appropriate Regional Directors and the
   five facilities affected informing them of the RTP Power
   Conservation Mode and designated load-shed period.

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`SUPPORT SERVICES /ENGINEERING AND`
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`IVK01-0001`|

K. The Facility Maintenance Engineer will comply by starting
   the generator one hour prior to the designated load-shed
   period, apply load and keep the generator running for the
   duration of the load-shed period.

L. If the load-shed period extends beyond the first
   maintenance work shift, the Warden will ensure the
   necessary personnel are assigned to keep the generator
   running for the remainder of the load-shed period.

M. The Facility Maintenance Engineer or other staff
   designated by the Warden will evaluate diesel fuel levels
   after each day of generation operation and refuel as
   necessary.

N. The Warden shall ensure all non-critical loads are
   reduced during the load-shed period. This will result in
   additional economic benefit by reducing load below the
   respective customer base line.

O. All shifts shall keep a central log of generator use and
   run time on load-shed days. The log should be faxed or e   mailed daily to the Utilities Project Manager.

P. The Facility Maintenance Engineer will communicate any
   problems with generator use to the Warden, Regional
   Maintenance Engineer and Utilities Project Manager.