Substations and Feasibility

The economic feasibility of converting a substation from distribution to transmission service can be determined from the following relationship:

NAS = SAV + DEREG – CONV – OM, where:

NAS = Net annual savings.

SAV = Annual savings due to switching from the distribution tariff to the transmission tariff.

DEREG = Estimated annual savings due to buying power in a deregulated environment.

CONV = Annual carrying charges for converting to transmission service.

OM = Annual operations and maintenance cost of the transmission substation.

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