Mike S. here from Boise. Have a manufacturing client considering Idaho Power's Schedule 19T time-of-use rate versus their current Schedule 19 standard demand rate. They run two shifts, 6am-10pm Monday through Friday, pretty consistent load around 850 kW. The TOU peak hours are 1pm-9pm weekdays which hits most of their second shift. Anyone done analysis on IP's TOU rates recently?
Idaho Power Time-of-Use Tariffs - Worth the Switch for Manufacturing?
Anita W. from Fargo, different utility but similar situation with Xcel. The key is modeling their actual load profile against those peak hours. If they can shift any significant load to nights or weekends, TOU can pay off big. But if they're stuck running during peak, could cost more than standard rates. Have you gotten 15-minute interval data from Idaho Power yet?
Anita, working on getting the interval data. Idaho Power said it takes 2-3 weeks to pull historical 15-minute data. From what I can see in their current bills, demand peaks around 3pm most days when both production lines are running plus HVAC load kicks in. That's right in the middle of TOU peak period.
Chester L. from Burlington here. Different climate but we looked at similar analysis for a client. Don't forget to check if Idaho Power has seasonal TOU variations. Up here Green Mountain Power has different peak hours winter vs summer, and the rate differentials change too. Could affect the payback calculation significantly.
Oscar F. from Juneau chiming in. Alaska is different market but one thing to watch - some utilities have minimum participation periods for TOU rates. AML&P here requires 12 months minimum before you can switch back. Make sure you understand IP's rules before committing your client.
Good points everyone. Got the interval data and it's not pretty - they're hitting peak demand right at 3pm almost every weekday for the past six months. Peak period charges would be $14.85/kW versus $11.20/kW standard rate. That's about $3,000 per month more just on demand charges. Energy savings during off-peak don't offset it.
Randy here from Memphis. Mike, before you write off TOU completely, talk to the client about load shifting possibilities. Can they pre-cool the facility before 1pm? Shift some production to night shift? Install thermal storage? Sometimes the TOU rate analysis opens up energy efficiency opportunities that make the overall project worthwhile even if straight rate comparison doesn't work.
Randy, that's exactly what happened! Client is now looking at a thermal storage system and shifting one production line to 11pm-7am schedule. The night differential for workers is less than the demand charge savings. Might turn this into a much bigger efficiency project. Thanks for pushing me to think beyond just rate comparison.
Connie A. from Salt Lake City here. Mike, curious how that project worked out? We're looking at similar situation with Rocky Mountain Power. Client balking at night shift costs but if your numbers worked might be good precedent to show them.
Connie, still working through the details but preliminary numbers show about $4,200/month savings on electricity costs versus $2,800/month night differential costs. Net $1,400/month savings plus they qualify for some Idaho Power demand response programs worth another $800/month. Client approved the pilot program starting January.