The storage volumes are often limited in terms of availability. Since volume is expensive, optimizing its use is very important to make reasonable net earnings. The overall purpose of this work is to develop a configuration of compressed air energy storage which would improve the energy rating of CAES. Methods have been developed to compare the hourly basis operations of constant pressure and constant volume CAES for a particular day. This is significant because we do not need large amounts of storage energy for operations on hourly basis. Methods have been developed to determine the operational and economic benefits of high energy rating CAES configuration to store energy on monthly basis and daily basis. This is significant because high energy rating CAES configuration might surpass the operational requirements of hourly basis CAES operation. In addition, wind does not only change on hourly basis but also on daily and monthly basis. This would provide an opportunity to capture wind energy during months and days of high winds having low demand and using it during months and days of low winds having high demand.