Voltage Optimization

Project Description

TVA proposes to promote a voltage optimization program with local power companies (LPC) and directly served industrial (DSI) customers that continuously operate distribution feeder voltages in the lower half of the ANSI standard voltage range (C84.1), thereby reducing energy consumption annually. TVA will incent participants to optimize utilizing voltage end-of-line (EOL) measurements on distribution feeders, offsetting revenue losses with incentives paid based on measured reductions.

Voltage optimization can be accomplished by deploying Conservation Voltage Regulation (CVR) systems that leverage: End of Line (EOL) voltage monitoring, advanced metering, and/or regulating control systems. Distribution feeders that are primarily residential or small commercial loads are the most effective for CVR.

In addition to incentives paid by TVA, the current rate structure offers inherent financial benefits to operating CVR.

Project Implementation

TVA will issue a Request for Proposals (RFP). TVA will then secure contracts with the winning bidders; obligating TVA to pay the participant financial incentives based on their monthly performance and obligating the participant to operate and maintain the CVR equipment for the contract period.

Once systems are installed and operating, TVA and each participant will perform testing to determine the actual CVR impact. TVA will use data from the tests to determine the performance of each system and the appropriate payment factors.

TVA will evaluate the responses with consideration given to:

  1. Proposers’ desire to participate in the program.
  2. Proposers with Load Tap Changing (LTC) transformers that control several distribution feeders or local power companies that have voltage regulators controlling distribution feeders.
  3. The duration of time required for proposer to purchase, install and place the CVR equipment in operation.
  4. Proposers that can deliver the largest energy savings up to budget limitations per year.
Project MilestonesDates*
Release RFP December 12, 2014
Intent to Bid Form Due December 22, 2014
RFP Submission Deadline March 16, 2015
Award Projects Spring 2015
CVR Project Implementation Begins Summer 2015
CVR Project Completion Date (All equipment installed, testing requirements completed, system fully operational) October 1, 2017
Progress Reports to EPA by TVA Semi-annually
Final 60-Day Report to EPA by TVA March 22, 2018

* Dates are tentative and subject to change

EPA Agreement Five-Year Budget

$30 to $60 million for Voltage Optimization project.