Cost justification of the new Ohio Edison Company's energy management system

摘要

A systematic method for analyzing alternative strategies that the Ohio Edison (OE) Company used during the feasibility study of its energy management system (EMS) is discussed. A key element in the requirements study of an EMS is determining the value of not only the present system, but also of several feasible alternatives in terms of present worth dollars. The term value represents the difference between a system's benefits (or the loss of those benefits) and its cost. When the values of various alternatives are compared over time with that of the existing system, the most cost-effective point for system replacement can be accurately defined along with the best alternative.