Paper mill — 6 meters, 3 rate schedules, and a power factor nightmare

Started by Walt D. — 9 years ago — 21 views
Working on a paper mill in suburban Pittsburgh with 6 electric meters on Duquesne Light. Three meters are on an industrial rate, two are on a large commercial rate, and one is on a small commercial rate. The mill also has power factor problems — PF averages 0.73 across all meters. The complexity is overwhelming. Where do I start?
Start with the largest meters by spend — those will have the biggest dollar findings. Check whether all six meters should be on the same rate or whether the different rate classifications are correct. Paper mills typically have production loads, support loads (HVAC, lighting), and auxiliary loads (offices, warehouse). The production meters should be on the industrial rate. The others may legitimately be on lower rates depending on their demand levels. Verify each meter's rate eligibility independently.
Carl is right — verify each meter independently. For the power factor, 0.73 across six meters suggests a systemic issue, probably from the paper-making motors. Check whether Duquesne's tariff applies the PF penalty per meter or on the aggregate. Some utilities penalize each meter individually, others calculate PF on the total facility. If it's per meter, some meters might be above the threshold even though the average is below. Also check whether the mill qualifies for an economic development rate or an interruptible rate — paper mills often do because they can curtail production during peak demand events.
I audited a paper mill on Duquesne two years ago. Found that two of the meters were on legacy rate schedules that had been replaced during a rate case. The billing system never migrated them to the new schedules. The replacement rates were cheaper. Check whether all six meters are on currently effective rate schedules — not expired or grandfathered ones.
Great starting points. Tackling the two largest meters first and checking rate eligibility, PF penalty calculation, and whether the rate schedules are current. This is going to be a 40-hour audit at least but the potential is enormous at this spend level. Will report back.