The encyclopedia · Engineering & Operations · Technical decision · 2015–2016
Tampa Electric models its fuel mix to cut costs and meet emissions rules
A mixed-integer model optimizes Tampa Electric's fuel procurement, transport and blending for 2-3% fuel savings.
Tampa Electric Company (TECO)
the move
Tampa Electric Company serves 687,000 customers in Florida and generates about 60% of its electricity with coal-fired generators.
Environmental regulations on coal-combustion emissions require it to mix several fuels of different qualities into blends that are safe, environmentally acceptable and affordable, and generator-specific.
The team built a decision-support platform centered on a mixed-integer programming model that captures TECO's fuel supply chain, letting it make optimal procurement, transportation, blending and burn decisions while satisfying all regulations.
why it works
- Fuel quality, cost and emissions constraints interact, so they were solved together.
- The model is generator-specific, so blends are tuned to each unit's needs.
- It covers procurement, transport, blending and burn decisions end to end.
- Compliance was treated as a constraint, not a cost to minimize away.
what transfers
When regulations constrain a blend, model the whole fuel chain so the cheapest compliant mix is found, not just the cheapest coal.
what came after
The team estimated the model can provide TECO annual fuel-cost savings of 2–3%, which translate to millions of dollars given its total fuel spend, while keeping the utility in compliance with emissions regulations.
references
- A Decision Support System for Fuel Supply Chain Design at Tampa Electric Company
- Mixed-integer programming (MIP) - Togar Napitupulu (TECO abstract)
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