Moved a Sioux Falls manufacturer to Xcel's TOU rate thinking it would save money. Their production schedule has them running equipment during peak hours. Bill increased $400/month. Should have analyzed their actual usage patterns first.
Xcel Energy Minnesota time-of-use rates backfired
TOU rates only work if you have load flexibility. Manufacturing clients often can't shift production just to avoid peak pricing.
Exactly. This client runs continuous processes that can't be interrupted. The 4-8 PM peak period hits their highest production time.
I always ask clients about their operational constraints before recommending TOU rates. Some businesses just can't be flexible with timing.
Nebraska utilities have similar TOU options. Key is matching the rate structure to the business model, not just looking at per-kWh savings.