Client in Newark operates aluminum foundry. PSE&G Rate Schedule GP-HT (high tension) has them on 15-minute demand billing. Peak demand 2,850 kW but load factor terrible at 45%. Monthly demand charges averaging $31,000. Anyone dealt with similar situation?
PSE&G demand charges hitting aluminum foundry hard
Check if they qualify for PSE&G's interruptible rate. Schedule GP-I offers demand credit for curtailment capability. Aluminum foundries often good candidates since they can shut furnaces during peak alerts.
Also look at power factor. Foundries with induction furnaces often run poor PF. PSE&G charges penalty below 0.90. Installing capacitors could save significant money and improve demand profile.
Had similar case with Alcoa facility in Louisville on LG&E. Moved them to experimental time-of-use rate and saved 18% on total bill. Worth checking if PSE&G has pilot programs available.
Industrial load management is key. Foundries have flexibility in scheduling operations. Work with client to shift non-critical loads away from system peak hours. Demand response programs can also provide revenue stream.