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Conversion
of Electrical Customer Status
to Commercial Status
Department
of Corrections
implemented
this best practice in December 1998
Qualifying
under the Best Practices
catalogue:
3 Provide Capabilities
31 Manage resources and capabilities
312 Deliver products and services to customers
Best
Practice Summary
(how it works, how you measure it)
During the
summer of 1998, it was discovered that Lunenburg Correctional
Center was rated for commercial electrical service but was paying
the same as a residential rate for electrical service through
Southside Electric Co-op (SEC). Furthermore, it was discovered
that the commercial/residential rate is based upon peak utilization.
A solution was to convert to Industrial status. This would provide
a new rate which would be much lower and based on non-peak
utilization, or the lowest possible rate. To qualify, the monthly
KW utilization needed to exceed 1,000 KW's. LCC's consumption
averaged 1,100 monthly. This rate change would reduce fees paid
by as much as 40 - 50 %. Therefore, it was decided to convert
to industrial status. This necessitated the following:
a) LCC
purchased SEC's equipment originally installed on prison site
and paid SEC's original labor cost for installation - total cost
of $72,841;
b) LCC
purchased the annual maintenance agreement with SCE for $500.00;
c) Utilization
of an alternate power source during peak periods, when notified
by SEC;
d) Installed
remote start-stop devise for the generators at a cost of $9,500.00.
In practice,
peak periods as determined by SEC work out to an average of 3
hours per week. This has resulted in an approximate increase of
$ 831.00 in generator fuel consumption per year.
Impact
on the Process Organizational Performance (OUTCOMES)
Since
conversion, LCC has reduced electrical service fees by $171,082.70.
This represents a 49.21 % reduction in electrical costs through
the first eleven billing periods since conversion. During the
seventh month, the cost of conversion was recovered. An estimated
total annual savings from this change is $185,803.00. Operating
on alternate power approximately 3 hours weekly has been beneficial,
as it has helped to detect generator problems under test conditions
and improve their readiness condition for emergency utilization.
In a larger sense, this initiative has reduced energy consumption
in this geographic area as a result of alternate power utilization
during peak periods. This reduction has helped state government
provide another example of the importance of and potential benefits
that derive from operating in an environmentally responsible
manner.
Best
Practice Qualification
This initiative
is the result of leadership asking the right questions and aggressively
exploring alternatives to conventional approaches in an effort
to protect and stretch the Commonwealth's resources. This initiative
has resulted in other prison sites exploring similar ways of reducing
energy consumption and related expenditures. Since not all electrical
suppliers offer such opportunities, this option will not be available
to every institution. However, by exploring possible avenues for
containing resource consumption, and through innovation, greater
success can be achieved, as has been the case at LCC.
For
Additional Information
Department
of Corrections
Lunenburg Correctional Center
Post Office Box Y, 285-P
Highway #49
Victoria, VA 23974-0650
C.
D. Larsen
Warden, Lunenburg Correctional Center
(804) 696-2045
John
Britton, Manager
Certification, Planning, and Research Unit
Virginia Department of Corrections
(804) 674-3268
brittonjt@vadoc.state.va.us
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