}IE\IOR{NDUM

November 9,2002
VVVVVVVV
To: PA/SK
From: CPM Chumphol Mahattanakul
Re: Comparative (Electricity) Cost-Saving Unit - TOU vs TOD

I Formulation
Consider a cost-saving unit S : uroD - urou, where u is a unit cost.
: Croo- Crou, where C and E represent
E E total electricity cost and
energy consumption,
respectively.
: _L[(prP + e3E) - (prP * erEr+ ezEz)],
E
where pr and €-i ?t€ given TOD charges on on-peak power demand P and
total energl'consumption E, respectively; andp2, er and e2zte given TOU
charges on on-peak power demand P, off-peak energy consumption E1
and on-peak energy consumption E2, respectively. By re-arrangins. \\'e
obtain
S : (pr - pz)P 1 €3 - o1E1 - e;E'
EEE
: (pr - pz)B l-.c,r :-Qt(l- 6) - e26, where 6 is
E on-peak ratio E2 and
E
E1 -E':I
: (ei - er) * br - pz)P - (ei - e:)6
E
:(e: -e,)+(pr-pz)P -,€--e:]6, ?Se1 (€2
E
Thus, a cost-saving unit at period t
St:(ei -er)+(pr-pz)P, - l.r-e:|6,
Er

At period t-1; St-l :(e, -er)+(pr-pz)Pt*r - l.r-ezl6t*r

Et*t
A change in cost-saving units between period t and t+l
aS
A:5111 -51

A': (pr- pz)[P,*r - P,] - 1., -.rl(4,*t - S,) .. (1)

E*r Et
Therefore, to increase a cost-saving unit is to -eovern the following tu'o
factors:
[It*r - P1] and (6,*r - 61); where the first is to be gteater positive Pt*r > Pt,
E,*t Er E-rt Et
while the latter approaching zero or becoming negative (declining on-
peak ratios 6t*r ( 61) when compared with the former period. The latter
one is acceptable according to its tariff structure.

fFurther to a maximization of a change in cost-saving units in continuous

rather than discrete form as shorvn hereupon, s1 is thereby to be
differentiated and equated to zero. We obtain
ds : (pr - pz)tEdP -PdEl - l.t - ezl d6 : 0
dt E2 dt dt dt
Either keeping P(t) or E(t) constant to time, some entanglements will be
found with inational erplanation So we will omit it here without proving
if the second differentiation ri'ould gain a negative sign - as being a
sufficient condition,]

II Anall'tical
\-ieu's for Causes and Effects
According to Equation l1 t. as for the first factor, look into a change in
proportion of on-peak pouer demand to enersv consumption. In case \\e
can b1' all means curb on on-peali po\\ er demand P all the periods, sa)-,
equaling to Pt, then, energy consumption E at any given period t should
become less in magnitude of kilowatt-hours than the period before t-1 in
order to save lnore. This would rather be illogical especially when
considerinu a production aspect. Likeu'ise. to gain a TOU sar ings over
TOD. on-peali po\\ er demand should be continuousll, stepped up, uhile
keeping energy consumption constant. By this, this is so rrrational in
respect of energy conservation. Therefore, weak points of the current
tariff structures based on time-ot'-use (TOU) and time-of-day (TOD)
exist. Anyway, as most of the factories are being compelled to have no
choice, that is, to irrevocablv become under TOU tariff rates, a
comparative study is to no avail.

III \umerical Analysis

According to TOIJ and TOD tariffs, pr :Baht 285.05/KW, pr : Baht
I32.931KW, q : Baht 1.1914/KWH and az : Baht 2.6951KWH.
Herebelow is an example for BWM-Bang Sue for the six consecutive
months.
 Factor I Factor II
Pt I P,.r - P,] 6t (6,*t - 6) estimated actual
Et Et*t q ar* 31 At
0.4071 -0.0239 -0.0785 0.192 -0.007
1(Apr) 0.00192 -0.00028
0.3832 0.0160 -0 0362 0.185 -0.012
2(May) 0.00164 -0.00008
0.0010 -0.0152 0.19'7-0.015
3(Jun) 0.00156 -0.00009 0.36'72
0.182 -0.012
-0.0133
a(JuD 0.00147 +0.00006 0.3682 0.0149
-0.0086 0.170 -0.008
5(Aug) 0.00153 -0.00004 0.3831 0.0017
-0.00006 0.3848 0.0051 -0.018 0.162 -0.019
6(Sep) 0.00149
0.3899 0.143
7(Oct) 0.00143

* according to Equation (l)

Please note that estimated A** and actual f in April and May were not incongruent on
account of somewhat irregularities'

As seen, both factors have attenuated the changes in TOU vs TOD unit
cost sa\"ings as Factor I (periodical difference in proportions of on-peak
po\\'er deirand to energ]- consumption) \\-ent negati\-e throughout six
months (except Jull-) *d fu.tor II (periodical difference rn on-peali
ratios) Oia no1 either converge towards zero or turn negative (except
Aprilj. It is meant that our on-peak ratios have not been attained in
respect of individual months (that is monthly ft is not less than or equal to
its respective individual nominal value) and month-by-month
comparisons (that is il.r - E is still positive)'