New client runs a packaging operation in Memphis on MLGW. They run a heavy second shift — 3 PM to 11 PM. Most of their consumption is in the evening. Would a TOU rate help them?
Should I recommend TOU for a client who runs second shift?
Depends on when the on-peak window ends. MLGW's TOU peak period is typically 1 PM to 7 PM. Your client's second shift overlaps heavily with peak hours from 3 to 7 PM — that's 4 hours of on-peak usage every day. The off-peak hours from 7 PM to 11 PM would be cheaper but you'd need to run the numbers to see if the 4 hours of on-peak penalty outweigh the 4 hours of off-peak savings. My gut says TOU would NOT save this client money because of that afternoon overlap.
Ed's instinct is probably right but run the calculation to be sure. Also consider whether the client could shift their start time from 3 PM to 7 PM. If production could begin at 7 PM instead of 3 PM, they'd be entirely off-peak and the savings could be substantial. It's not your job to change their operations but flagging the opportunity is valuable. Some clients can adjust shift schedules more easily than others.
Ran the numbers and Ed was right — TOU would cost $600/month MORE because of the afternoon peak overlap. But the client said they could potentially shift to a 7 PM start. If they do that, TOU would save $1,900/month. Presenting both scenarios and letting them decide.