World Grain - March 2011 - (Page 82)

FEEDOPERATIONS Energy savings Having a thorough understanding of the monthly power bill can help feed milling companies save money by Fred Fairchild Editor’s note: This is the first in a series of articles on energy savings in feed mills. In a future article, we will explore ways to reduce electricity use in the mill. When looking at ways to conserve electrical energy in operating a feed mill, one must first understand what the energy is costing. The cost of electrical energy is normally the highest expense in the operations of the mill. THE ELECTRIC BILL Each plant receives a monthly bill for its electrical use. The different parts of the bill may be presented in various ways depending on the power company’s billing format and the specific contact with the mill facility. In most cases, the electric bill may be divided into three billable components, the sum of which determines the total cost of the bill. Those three parts are: the total amount of energy used, the rate of use (demand) and how efficiently the power is used (Power Factor). In simple form, a monthly electric bill may look like this: Energy Use: 1454400 KWH /KVA @ $0.2704 = $39,326.98 Rate of Use (Demand): 3229 KVA @ $7.30 per month = $23,571.70 Demand Adjustment of 4% (Power Factor): $23571.70 x .04* = $942.87 TOTAL CHARGES = $63,841.55 *The power factor for the billing period was 0.86. The contract requires that the power factor be 0.9 or greater to avoid a power factor penalty (added charge) on the bill. Based on the bill, we will take a look at how the costs are determined. POWER FACTOR Power factor is based on the relationship of the two types of currents — reactive and active — required in the electrical system. Reactive current is energy that is needed to energize the field of the motor windings. It is energy that is not used up, just transferred back and forth between the motor and the power system each half cycle. This current does not turn the watt-hour meter and therefore is not shown on the amount of energy used. However, the power company lines and equipment must be sized to handle this current load. Active current is the energy used to actually do the work. This current is recorded on the watt-hour meter and is seen on the energy bill as the amount of energy used in the billing cycle. Likewise, the power company lines and equipment must be sized to also handle this current load. The power company does not like to deal with reactive current because they have to generate and transport it, but don’t get paid for it. Due to the characteristics of electricity and its use, a small portion of the reactive current is lost and not returned to the power company. The power company ex- For more information, see Page 94. 82 March 2011 / World Grain /

Table of Contents for the Digital Edition of World Grain - March 2011

World Grain - March 2011
from the editor-in-chief - Arab revolution of great importance for wheat
Australia’s winter crop estimated to increase 19%
With China crop in trouble, wheat surges upward
Port of Novorossiysk grain volumes decline 36.5%
FEFAC welcomes E.U. decision on GMO
Cargill to build new corn processing plant
Joint venture to build new canola crush plant in Canada
CWB purchases lake vessels for grain
E.U. compound feed production increases in 2010
U.S. fl our production in 2010 gains 0.4%
Industry responds to corn amylase approval
Scoular purchases ethanol plant, shuttle facility
Income from operations, sales soar at MGPI
Grain, ethanol boost The Andersons, Inc. to record results
Bunge’s net income rises on strong agribusiness performance
COUNTRY FOCUS - Focus on the Philippines
Key Facts
Flooding takes toll on Australian grain industry
Single desk survives — for now
What's next for Russia?
A New Vision
Unrest in Egypt
New look for Victam International 2011
Attendance surges at IPE/IFE
Deep in the heart of Texas
Schedule at a glance
Nominations solicited for Milling Operative of the Year
IAOM Conference & Expo - 2011 exhibitor booths
FEED OPERATIONS - Energy savings
Proactive path to PEST MANAGEMENT
Seeking to add customer value
Buhler Technology Group has successful 2010
Stern-Wywiol Gruppe receives prestigious business awards
Perten to supply Turkish Grain Board with Inframatic analyzers
GSI Group launches new customer-centric website
Ocrim supplies Libyan mill
Cargotec to acquire terminal operator systems provider
Eurofi ns appoints new chief scientifi c offi cer
4B Braime opens new subsidiary in Australia

World Grain - March 2011