Leadership

ECONOMICAL METHODS AND STUDY OF ECONOMIES

Issue 12 and Volume 53.

ECONOMICAL METHODS AND STUDY OF ECONOMIES In studying possible economies of construction and operation for power stations, one must consider three factors: The rental due to the first cost of building and equipment, the cost of fuel, and the cost of labor. A power plant which is used 10 or 12 hours a day for weekdays only will not always pay the interest on expensive equipment and must get along with moderately economical machinery. A plant which has a fluctuating load cannot afford compound or triple-expansion engines because of the extra expense of reserve units. A pumping station, on the other hand, with its 24-hour schedule and its reservoirs and storage tanks to steady the load, may well afford the best equipment which can be bought. The saving of fuel and labor in this case is continuous and will offset a much larger interest account than for the plants first…

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