Hi everyone, Beth A. from Tampa here. I'm trying to understand Duke Energy Florida's Schedule GS-2 demand billing tiers for a client with a 150 kW peak. The tariff shows different demand charges for first 20 kW versus excess, but I'm confused about how the tier breaks work with their coincident peak adjustment. Has anyone worked through this rate schedule recently?
Duke Energy Florida Schedule GS-2 demand tier confusion
Phil here, also Tampa. Duke's GS-2 has that first 20 kW at around $8.50 and excess demand at $12.75 per kW, but you have to watch for the coincident peak factor that can bump your billing demand up. Are you looking at summer or winter rates? The coincident peak adjustment is usually higher during summer months.
Randy Dawson here. Duke Energy Florida's GS-2 schedule does have that tiered demand structure, but the key is understanding how they calculate your billing demand versus your actual measured demand. The coincident peak factor is applied to your measured demand, then that result gets run through the tier structure. So if your client hits 150 kW but the coincident factor pushes billing demand to 165 kW, you pay $8.50 for first 20 kW and $12.75 for the remaining 145 kW. Beth, check the latest tariff effective date too - Duke has been updating their demand charges quarterly.
That makes sense Randy, thank you. I was missing how the coincident peak adjustment gets applied first before the tier calculation. Phil, this is for summer rates so you're right about the higher adjustment factor. Found the current tariff on the Florida PSC website dated August 2024.
Rosemary H. from Tallahassee. Just wanted to add that Duke also has that minimum demand provision in GS-2 - I think it's 75% of the highest billing demand in the prior 11 months. Don't forget to factor that into your analysis if the client has seasonal load variations.
Good catch Rosemary! Yes, the ratchet provision could definitely impact this client since they have some seasonal variation. Appreciate everyone's help working through this tariff.
Ray T. here from Savannah. Georgia Power has a similar tiered demand structure if anyone needs to compare. Their Schedule GSD has first 30 kW at one rate, next 170 kW at higher rate, then excess over 200 kW at the highest tier.