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LOSS MANAGEMENT PROCEDURE

Distribution System Loss Reduction Manual
(According to Distribution System Loss Reduction Manual)


Before we integrate all the necessary analysis in relation to power system’s loss; especially focusing on the different components involved, let us first be oriented with the widely accepted procedure in loss management according TVPPA Research & Development

Loss Reduction Step: 1 Read and Study the DSLR Manual

The first step is to read and study the Distribution System Loss Reduction Manual. Persons who will be working on the distributor’s loss control program need to be familiar with the entire spectrum of matters involving distribution loss control. This manual outlines the important aspects of a loss control program and can be used to develop the necessary knowledge and skills for the distributor’s loss control team. Some formal classroom training using this manual as a textbook is recommended.


 
Loss Reduction Step: 2 Determine Costs

        The second step is to determine the cost of losses per kW and kWh. A study should be made of the power and energy sources for the distributor and the costs from the costs from these sources for both power and energy, with emphasis on the cost of the last increment of power and energy. For example, fixed hydroelectric allocations should not be included in the cost of losses, since this amount of power and energy will always be purchased. The cost of losses is derived from the power and energy source that can be reduced if losses are reduced.
Loss Reduction Step: 3 Determine the Extent of Losses

        The third step is to determine the extent of system losses. This is accomplished by comparing the total energy purchased and generated to total energy sold to consumers or otherwise used. The extent of the system loss can be represented as a percentage, as described later in this manual, and compared with other cooperative or municipal electric utilities with similar service territories.

Loss Reduction Step: 4 Establish Recordkeeping Systems

        The fourth step is to establish adequate recordkeeping systems. An effective loss control program requires good-quality data about the losses occurring on the system. This information is used to calculate the savings that can result from steps taken to reduce losses. To be valid, economic comparisons must be based on good-quality system data.

Loss Reduction Step: 5 Determine Where Losses Are Occurring

        The fifth step is to determine where losses are occurring. For typical system, the loss problem may be more severe in some areas than in others. The loss control program must determine which areas have the greatest need for loss reduction measures so efforts can be concentrated in those areas.

Loss Reduction Step: 6 Develop Specific Plans

        The sixth step is to develop plans for reducing losses in high-loss areas. After the high-loss areas are identified, plans can be made for upgrading lines, transformers, and other equipment in these areas to reduce the electrical losses.

Loss Reduction Step: 7 Estimate Improvements Costs

        The seventh step is to estimate the cost for loss improvement projects. Construction cost estimates for the materials and labor necessary to upgrade the system to reduce losses can be produced by methods used for other types of construction projects.

Loss Reduction Step: 8 Perform Economic Comparison

        The eighth step is to perform an economic comparison. Using methods described in the manual, an economic comparison can be made between the annual savings that will result from reduced losses and the capital costs associated with the construction projects to control those losses. At this point, an estimate of the net savings from loss control is produced.

Loss Reduction Step: 9 Prepare Presentations

        The ninth step is to prepare presentations for submittal to governing boards and representatives responsible for authorizing financing of the projects. After projects that will produce net savings have been identified, it is necessary to prepare the economic comparison case in a form suitable for presentation to those who will make the final decision on budgeting the required construction funds.

Loss Reduction Step: 10 Carry Out specific Projects

        The tenth step is to carry out the construction work. After funds have been allocated for the construction work to reduce losses, the final step is the actual performance of that work so the loss reduction benefits can begin to accrue.

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