Clyde from Eugene. Client is planning to add a 75 kW electric industrial oven to their operation. Their current peak demand is around 140 kW. If the oven runs simultaneously with existing peak loads their demand charge could increase by 40 to 50 percent. Client has not thought about this at all. Is it my place to raise it?
Client wants to add a large electric oven — demand charge impact
Walt from Pittsburgh. Absolutely your place to raise it. Advising on the demand charge implications of new equipment is a natural extension of your audit work. It is exactly the kind of forward-looking value that distinguishes a good auditor from one who just finds past errors.
Mike D. I would model three scenarios: oven runs at peak load times, oven runs offset from peak, oven on a separate meter and demand account. Present the demand cost differential for each scenario and let the client decide.
The separate meter option is interesting. If the oven had its own account could it potentially be on a different rate class?
Derek. Possibly. A standalone 75 kW oven on its own service might qualify for a small commercial rate with a lower demand charge structure than the client's current industrial account. Worth checking the tariff for the threshold breakpoints.
This is starting to feel like a consulting engagement beyond the original audit scope. How do you handle the billing for that kind of additional advisory work?
Walt. I distinguish between findings from the audit, which are covered by the engagement agreement, and forward planning advice, which I bill separately. A short advisory scope letter works well for this.