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MC UNITED STATES GENERAL ACCOUNTING OFFICE
WASHINGTON, D.C. 20548
ENERGY AND MINERALS
DIVISION
APRIL 11, 1979
B-114850
Mr. S. David Freeman
Chairman, Board of Directors
Tennessee Valley Authority
Dear Mr. Chairman:
We recently began anfvaluation of the Tennessee Valley
Authority's t -) load management activitief Our primary
purpose was to determine the status of various ongoing demon-
stration projects and evaluate their potential for application
to the utility industry. Because most of the projects are in
the preliminary stages of testing, their benefits are unclear
at this time. We do believe, however, that sufficient experi-
ence has been gained with water heater controls so that TVA
could accelerate its program for installation of these devices.
BACKGROUND
Load management has not been widely practiced in the United
States but is commonplace in many parts of the world. In many
countries, time-of-day rates are used in conjunction with com-
pulsory load management to obtain the best load patterns possi-
ble for the systems. Time-of-day metering was introduced in
the United States in the 1930's. Off-peak storage-type water
heaters were controlled first by time clocks and later by various
electronic devices. About 20 percent of United States water
heaters are already on off-peak controlled systems. For example,
--Detroit Edison Company (DE) has amassed ten years
of experience in operating a system that flattens
demand by controlling customers' water heaters.
This load management system augments system reserves
on a seasonal basis so its effect is reflected in long-
range capacity planning. It improves system reliability
by increasing daily and weekly operating reserves. It
also helps minimize consumption of costly oil and natural
gas.
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