Demand Management Using Dynamic Voltage Reduction at Rural Electric Cooperatives

Most wholesale electric rate structures include a demand component typically measured over one hour. Frequently the demand is tied to the regional power system's peak hour; this is known as a coincident peak (CP) demand charge. Alternatively, the demand charge applied is tied to the distribution system's one-hour maximum demand; this charge is known as a non-coincident peak (NCP). One way to lower the demand charge is by using Dynamic Voltage Reduction (DVR), which applies conservation voltage reduction (CVR) practices during forecasted peak hours. DVR is a strategy to lower the system operating voltage during the forecast peak window, thus reducing the energy delivered, which results in lower demand. This paper highlights lessons learned during a recent study of four electric cooperatives that utilize this strategy in partnership with their G&T. Additionally, the paper discusses the requirements and best practices for implementation. Finally, the results of a systematic statistical analysis of about 100 distribution feeders are presented. The analysis seeks to identify the load profiles that produced the best results. The information presented provides cooperative engineers with a toolkit and roadmap to evaluate and implement DVR on their home distribution system.