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MIT Sloan > LearningEdge > Sustainability > Vermont City Electric
Vermont City Electric
Robert M. Freund and Jonathan Potter
In late 2008, Vermont City Electric (VCE), a municipal electric utility company, needed to determine which investments in demand-side management (DSM) programs to undertake in the context of the budget restrictions it faced. Based on the information contained in the case, students must construct and solve a mixed-integer optimization model of VCE’s operations over a six-year planning period in order to determine which DSM programs to implement and what the cost and carbon impact of these programs will be.
Learning Objective
To introduce students to a particular quantitative approach to solving energy conservation issues; and exploring learning topics such as: linear optimization modeling, modeling with time-periods, binary optimization modeling, electric utility modeling, energy conservation, sustainability themes, and the environmental impact and carbon footprint of operations.
Could be taught in the following course(s)
data, models and decisions, decision methodologies for managers, optimization methods, systems optimization, introduction to mathematical programming