Phil from Tampa here. I've got a client with a small office building pulling about 15-18 kW peak demand monthly. They're currently on Duke's GS-1 schedule but I'm wondering if GS-2 would save them money. The GS-2 has a $40 monthly demand charge but lower energy rates after the first 1000 kWh. Anyone run the math on the crossover point for Duke Florida tariffs?
Duke Energy Florida Rate Schedule GS-1 vs GS-2 - when does the switch make sense?
Angela R. here from San Antonio. I don't work Duke territory but the crossover analysis is usually around 2000-2500 kWh monthly depending on load factor. You need to factor in that $40 demand charge vs the higher energy tiers on GS-1. What's their typical monthly usage?
They're running about 3200 kWh per month, pretty consistent year-round. Load factor is decent at around 0.65. The GS-1 energy charges climb to $0.1145/kWh in the higher blocks.
Randy Dawson here. Phil, at 3200 kWh monthly with 15-18 kW demand, GS-2 should definitely save them money. The key calculation is comparing the GS-1 high-tier energy costs against GS-2's lower energy rate plus the $40 demand charge. Duke's GS-2 energy rate is around $0.0891/kWh after the first block, so you're saving about $0.025/kWh on roughly 2200 kWh monthly. That's $55 in energy savings vs the $40 demand charge - net $15/month savings. Also check for any applicable riders like the fuel adjustment clause and storm recovery charges that apply to both schedules.
Ann G. from Raleigh. Randy's math looks right. One thing to watch with Duke is their effective date procedures for rate schedule changes. In North Carolina they require 30 days notice but Florida might be different. Also make sure you're looking at the most current tariff - Duke filed some GS updates in their last rate case.
Derek O. here. The other factor is growth potential. If that office building adds tenants or equipment and pushes over 20 kW demand regularly, the GS-2 savings get even better. I always recommend modeling at least 12 months of billing data before making the switch recommendation.
Thanks everyone. Randy, your calculation matches what I was getting in my spreadsheet. Ann, good point on the effective date - I'll call Duke's commercial services tomorrow to confirm the process. Derek, the tenant expansion is definitely a possibility which makes GS-2 even more attractive long term.