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Case Analysis: the Early Bird – Electric Power Load Despatching

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Case Analysis: The Early Bird – Electric Power Load Despatching
The Early Bird – Electric Power Load Dispatching
Electric utility firms have, for more than two decades, used marginal productmarginal cost concepts to generate and dispatch electric power in a more efficient, lowercost manner. Southern Company, the nation’s third largest utility, refers to its load dispatching method as the “Early Bird” system. Southern’s Early Bird is designed to provide automatic, computerized control of all the company’s power production and transmission facilities. The Early Bird continuously calculates the marginal cost of delivering additional kilowatts of electricity to Southern Company customers anywhere in the company’s service area; then, …show more content…

In addition, because there is a loss of electricity in the course of “shipping” it through the transmission wires, Southern engineers make studies to determine the transmission loss coefficients from generating units to distribution substations. These, too, have to be updated several times a year since the transmission loss depends not only on the distance factor but also on the varying load characteristics of the system and changes in the transmission grid.
The marginal cost equations, together with the transmission loss coefficients, are the nucleus for Early Bird’s control of power generation and transmission. When, during the course of a day, the demand for electricity picks up, the Early Bird system is programmed to compare the marginal costs of generation at each on-line unit and then to send impulses to raise the electricity output of the unit (or units) where MC is lowest.
Simultaneously, another Early Bird program analyzes the transmission loss coefficients to calculate how best to allocate the increased load on the transmission grid so as to minimize transmission loss to the many substations and end-user locations. In similar fashion, when electricity demand falls off (as work shifts end and businesses close at the end of the day), the Early Bird system automatically sends impulses to

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