Minimizing residential electrical energy costs using microcomputer energy management systems

Load dependent or time dependent pricing structures provide electrical utilities with a means to use their existing capacities more effectively. Assuming that some type of load or time dependent price structure will be implemented by most utilities in the near future, it is worthwhile to assess the use of microcomputer energy control systems for minimizing residential electrical energy costs. This paper discusses the development of an optimizing energy management algorithm to reduce the cost of electricity under either a time-of-use or demand dependent price structure. A computer model which simulates the electrical demand and energy needs of a typical residence was developed to test the effectiveness of the optimizing algorithms. The results are presented for a period of 30 days for each season and price structure, under varying demand profiles. For a customer with an all-electric home using 2000 kWh each month, a savings of $140 a year is very realistic.