I'm analyzing a client in Huntsville with 45 kW demand averaging around 18,000 kWh monthly. Looking at Alabama Power's GS-2 versus GS-3 schedules and trying to nail down the exact crossover point. The tariff shows GS-2 applicable up to 50 kW but GS-3 might be better economics even at lower demand. Anyone have a good Excel model for Alabama Power comparisons?
Alabama Power's Rate Schedule GS-2 vs GS-3 - Where's the crossover point?
Albert M., I dealt with this same issue last month in Birmingham. The crossover really depends on your load factor - if you're running consistent baseload the GS-3 demand charge structure can work in your favor even below 50 kW. Alabama Power lets customers choose the rate that's most advantageous.
Great question Albert. The key is looking at the total bill calculation including the fuel cost recovery factor which changes monthly. GS-2 has that $15.26 customer charge plus $9.17 per kW demand charge, while GS-3 drops to $8.73 per kW on demand but has different energy blocks. I've got an Alabama Power comparison spreadsheet I can share - send me a PM with your email address.
Randy D., that would be fantastic! The fuel cost recovery is definitely throwing me off - I see it's currently at 3.892¢ per kWh but changes monthly. Val M., good point about load factor. This client runs pretty steady 24/7 so might benefit from GS-3 structure.
I'm in Georgia but deal with similar Southern Company tariffs. Watch out for the environmental compliance cost recovery rider too - it's easy to miss but adds up. Should be listed separately in the tariff book.
Greg W. is right about those riders. Alabama Power has several that aren't immediately obvious in the base rate schedules. The capacity clause, environmental compliance, and transmission cost recovery can add 1-2¢ per kWh total.
Thanks everyone. Got Randy's spreadsheet and it shows the crossover around 42 kW for this particular load profile. The environmental riders definitely make a difference - came out to about $285 extra monthly I wasn't accounting for initially.