Kurt from Chattanooga. Client runs a seasonal amusement park — open April through October, essentially dark November through March. They are on a standard commercial rate that was designed for year-round businesses. The demand charges during the off-season when almost nothing is running are disproportionate. Is there any rate class avenue for seasonal operations?
Seasonal business — rate class doesn't fit their actual operating pattern
Jim from Minneapolis. Some utilities have seasonal rate structures or interruptible rates that work well for highly seasonal businesses. Worth searching the tariff for any schedule that references seasonal, intermittent, or limited-use operation.
The tariff is about 200 pages. Where specifically would you look?
Jim again. Search the applicability section of each demand-based schedule for language about minimum billing demand or off-season ratchets. Some schedules have seasonal minimums that are much lower than what your client is being charged.
Rita from Phoenix. Also look at whether the client can request a seasonal disconnect or reduced service level during the off-season. Some utilities allow a hibernation or seasonal standby service that dramatically reduces minimum charges during dark periods.
Rita that seasonal standby option is something I had not considered. The client cannot fully disconnect because they need security systems and some lighting year-round, but a dramatically reduced service level during off-season might be available.
Jim one more time. The demand ratchet is usually the biggest issue for seasonal businesses. If the utility applies a ratchet based on summer peak demand that carries through the winter months that can be a significant overpayment. Check the ratchet provisions carefully.
Rita again. I found a seasonal business that was paying a 12-month ratchet on a 6-month operating season. Reclassifying to a schedule with no ratchet provision saved them $2,400 per month in the off-season.