April 26, 1994

Attendees:

OCNEAF: Electric Data Systems (EDS) Branch Larry Prete

EEUISD: Transportation & Industrial Branch John Preston
Bob Adler
Mark Schipper
Cindy Magee

Due to the Energy Policy Act of 1992 (EPACT), the Manufacturing Energy Consumption Survey (MECS) has become a biennial collection, instead of triennial, starting with the 1994 collection. However, other energy consumption surveys will remain triennial collections.

EDS cited three areas of interest for MECS review:

1. Renewable or Nonpurchased Energy Sources
2. Electric Power Production & Sales to Utilities
3. Demand Side Management (DSM).

EDS also prepares surveys that collect information about renewable energy sources, but the collection takes place on an individual basis, specifically for the following:

1. hydroelectric (conventional)
2. geothermal
3. biomass (including wood, wood waste, peat, wood liquors, railroad ties, pitch, wood sludge, municipal solid waste, agricultural waste, straw, tires, landfill gases, fish oils, and/or other waste)
4. wind
5. solar thermal
6. photovoltaic.

On the other hand, the MECS gathers renewable information on a collective basis (not individual) for solar, wind, hydroelectric, and geothermal power. In addition, the MECS uses a much narrower definition of biomass, including only bagasse, rice hulls, peanut hulls, and the like. The MECS also groups together all wood (specifically for fuel use) into one category; wood chips, bark, and wood waste into another category; and waste materials, scrap, wastepaper, and packing materials into yet another.

EDS suggested a consistent classification and definition of renewables on both their surveys and the MECS. By striving for mutual consistency, these surveys would prove less burdensome to respondents who are asked to complete both. Internally to the Energy Information Administration, the advantage in survey consistency would be results that are more easily comparable to one another, with readily explainable differences.

For those purposes, the attendees agreed to set up a working group of members representing EDS and MECS. In this way, a reasonable attempt could be made to determine what energy sources should be classified into which generic categories. This working group would also be in the best position to resolve any data disclosure problems caused by the transfer of one or more energy sources into a category different from the last survey(s).

In its "Electric Power Annual," EDS prepares electric utility statistics and some information from nonutility power producers. EDS collects data for all of the fuel consumed for the production of electric power. If, for example, a boiler is used for heating a plant but not for electric power production, then this end use of energy is not counted. The MECS, on the other hand, provides an end-use compilation by direct process uses and non-process uses.

On the Survey Form EIA-867, EDS has changed SIC codes to be more consistent with the MECS. However, the nonutility generating facilities which are surveyed with Form 867 are not considered manufacturing establishments, and hence, would not be surveyed as part of the regular MECS collection. But the MECS does collect the quantity of energy transferred into a plant.

The MECS gathers electricity quantities for the following entities: purchased from utilities; purchased from nonutility suppliers; transferred from outside establishments; generated onsite by cogeneration; generated onsite by solar, wind, geothermal, and hydropower; generated onsite by other means; sold or transferred to utilities; sold or transferred to nonutilities.

EDS expressed concern that MECS respondents might not understand the distinctions between purchases and transfers, including the resultant net demand from sales and buy-backs. For example, an establishment might have a contractual agreement to sell its unused cogenerated electricity to a utility. However, as part of the agreement, the establishment might report that all of its cogenerated electricity was sold to the utility, with a corresponding buy-back of the part that was already consumed. For MECS purposes in this case, only the unused cogenerated electricity should be reported as a sale, and no electricity was really purchased here.

Agreement was reached that questions about electric power need to be defined properly and consistently to insure accurate response, especially in the area of sales and buy-backs. This issue of definition differences will be reviewed by the working group representing EDS and MECS.

The utility companies are promoting Demand Side Management to the industrial sector, but is it merely a strategic tactic to retain manufacturers as a base customer while dissuading them from purchasing their own generators? Are rates to the residential sector being increased as a result?

Currently, there is a lot of interest in Demand Side Management, what others are doing in this field, and the level of success of their programs. Since DSM may be a modern-day fad, it may not be profitable to do a lot of research in this area.

No decision/conclusion was reached by the attendees on follow-up action for DSM.

File Last Modified:  April 1, 1997

Contact:

robert.adler@eia.doe.gov

Robert Adler

Project Manager

Phone: (202) 586-1134

Fax: (202) 586-0018