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Title: Discussion Of Paper 72-T-19A
Author: James E. Fowler
Source: American Gas Association 1972
Year Published: 1972
Abstract: The authors are to be commended for their fine work shown in this paper. This paper describes TransCanada PipeLines Economic Design Program which consists of three main modules-the economic analysis module, the pipeline system module with algorithms to produce feasible designs and a case generator which automatically guides the program in the search for optimum designs. Pages 109 to 112 are devoted to a discussion of the economic analysis module of the design program. The approach used to select the optimum incremental facilities is to determine the alternative which has the smallest minimum revenue requirements. This writer agrees in principle with this approach. However, due to other considerations, could this module of the program be made to optimize or he expanded so that other criteria besides minimum revenue requirements are used? An example of other criteria could be minimum capital costs or possibly minimum cost of compressor fuel. It should be pointed out that economic calculations performed in the economic analysis module recognize the time value of money. This module contains some interesting and desirable features, i.e., the ability to escalate capital costs both pipeline and compression, fuel costs, municipal taxes, and operating and maintenance expenses, all at different rates.

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