Working on a PSE&G commercial account in Newark and their TOU-GSD rate schedule has me stumped. The demand charge shows three different tiers but I can't figure out how they determine which tier applies. Customer has 450 kW peak demand but bill shows Tier 2 charges when the tariff suggests they should be Tier 1. Anyone familiar with PSE&G's demand tier methodology? - Tony V.
PSE&G Rate Schedule TOU-GSD Demand Tier Confusion
Tony, PSE&G uses a 12-month rolling average for demand tier determination, not just monthly peak. So even if current month is 450 kW, if their average over the past year exceeds 500 kW they stay in the higher tier. Check the billing history to calculate the rolling average. Also watch for ratchet clauses that might be holding them in Tier 2. - Phil N.
Phil, that makes perfect sense. I pulled 12 months of bills and the rolling average is actually 523 kW even though recent months have been much lower. The ratchet clause kicks in at 80% of highest demand from past 11 months too. PSE&G's tariff language could be clearer on this methodology. Thanks for the help! - Tony V.