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Sustainability

Vermont City Electric

By

Robert M. Freund

Jonathan Potter

Nov 19, 2010

Abstract

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 Objectives

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.

Appropriate for the Following Course(s)

data, models and decisions, decision methodologies for managers, optimization methods, systems optimization, introduction to mathematical programming

Vermont City Electric

*TEACHING NOTES AND SUPPLEMENTAL MATERIALS ARE ONLY AVAILABLE TO EDUCATORS WHO HOLD TEACHING POSITIONS AT ACADEMIC INSTITUTIONS.