TVA interruptible rate program - worth it?

Started by Iris W. — 2 years ago — 1 views
Aluminum smelter in Tennessee is considering TVA's interruptible rate program. They're currently on Schedule MSD at 185 MW. The interruptible rate offers significant savings but requires 30-minute response to curtailment signals. Plant operations manager is nervous about production impacts. Anyone have experience with TVA's reliability on curtailment frequency?
Iris, TVA's interruptible program is pretty reasonable. In my experience, they call curtailments maybe 10-15 times per year, usually during summer peak. Most are only 2-4 hours. For an aluminum smelter with that much load, the savings could be massive - probably $200K+ annually. The key is having operational flexibility to reduce load when needed.
Omar's right about the savings potential. We helped a paper mill in Alabama join the program - saves them about $150K annually on 95 MW load. The 30-minute notice is usually workable for most industrial processes. TVA also gives advance warnings when conditions look tight, so it's not totally unexpected.
Thanks Omar and Beatrice. The savings potential definitely makes it worth serious consideration. I'll work with the plant engineer to identify which processes could be safely curtailed without major production impact. Sounds like TVA is reasonable about frequency and notice.
Just remember to read the penalty provisions carefully. Missing a curtailment signal can result in significant penalties that wipe out months of savings. Make sure the plant has reliable communication systems and clear procedures for load shedding. Otherwise, it's usually a good program for large industrial customers.