Wendell from Billings. Client is expanding their facility significantly. New production wing will roughly double their connected load. Before they bring it online I have an opportunity to advise them on how to manage the demand charge implications. What are the key strategies for a client facing a significant load increase?
Negotiating a demand charge reduction after a facility expansion
Walt from Pittsburgh. First priority is to notify the utility in advance and ask about any transition rate provisions or demand management programs for expanding customers. Some utilities have programs specifically for load growth that include demand charge incentives.
Mike D. Second priority is interval analysis of the existing operation to establish a clean demand baseline before the new loads come online. Document the current peak demand and its timing so you have a clear before picture for comparison.
The new production equipment will run on a different schedule than the existing lines. Is there an opportunity to design the startup schedule to avoid coinciding peaks?
Terry from Knoxville. Absolutely. If the new wing can be scheduled to ramp up during periods when the existing operation is at low demand you may be able to add significant connected load without dramatically increasing peak demand. That scheduling design is one of the highest-value things you can do for this client.
I had not thought of positioning this as an engagement opportunity beyond the traditional audit. Demand management consulting for an expansion project is a different but valuable service.
Walt. Yes and bill it accordingly. This is specialized advice that requires understanding both the tariff and the client's operations. It is worth more than a standard audit engagement.