Georgia Power Demand Threshold Crossing - When Do You Qualify for Better Rate?

Started by Beth A. — 1 year ago — 2 views
Client in Atlanta has been hovering around the 30kW demand threshold for Georgia Power's Schedule PL-1 vs Schedule GSD-1. Last 6 months they've hit 32kW, 29kW, 35kW, 28kW, 31kW, and 33kW. At what point should Georgia Power move them to the higher rate schedule? Their tariff language is confusing on this. - Beth A.
Beth, Georgia Power typically looks at highest single month demand or average over consecutive months depending on the rate schedule. For GSD-1 qualification I believe it's any single month over 30kW triggers the change. Check Schedule GSD-1 Section 2.1 for exact language. Your client should have been moved already. - Carol J.
Carol's right on the qualification trigger. Georgia Power Schedule GSD-1 applies to customers with maximum demand of 30kW or greater in any single billing period. Your client hitting 32kW and 35kW definitely qualifies them. The question is whether GSD-1 is actually better than PL-1 for their usage pattern - sometimes the lower rate has better economics despite higher demand charges. Run the numbers both ways. - Randy Dawson
Randy, ran the calculations and GSD-1 would save about $180/month due to lower energy charges offsetting higher demand charges. Georgia Power hasn't made the switch automatically though. Do I need to request this formally or should they have done it already? - Beth A.
Georgia Power should have switched automatically when demand exceeded 30kW but they don't always catch these things promptly. I'd submit formal rate change request referencing the months they exceeded threshold. Also request retroactive billing back to first qualifying month. - Sylvia D.
Had similar issue with Georgia Power in 2023. Client was 3 months over threshold before they switched the rate. Got 3 months retroactive billing adjustment worth $540. Key is documenting the demand readings and referencing tariff requirements for automatic reclassification. - Lucille W.
Thanks everyone! Submitted formal request with demand history and tariff citations. Georgia Power acknowledged they should have switched after the 32kW month. Processing retroactive billing now. Looks like 4 months of adjustments coming. This forum is incredibly helpful! - Beth A.
Beth glad it worked out! Quick question for the group - does anyone know if other southeastern utilities have similar automatic reclassification requirements or is Georgia Power unique in this? Seeing more threshold crossing situations lately. - Tim H.
Tim, most utilities have tariff language requiring proper rate classification when thresholds are exceeded, but enforcement varies widely. Dominion, Duke, and Southern Company subsidiaries generally have automatic triggers while some smaller utilities rely more on customer requests. The key is knowing each utility's specific tariff provisions and holding them accountable. - Randy Dawson
Randy's spot on about enforcement varying. Entergy here in Louisiana is hit or miss on automatic switches. Always better to proactively monitor your clients' demand patterns and request changes when thresholds are crossed rather than waiting for utility action. - Danielle F.
Final update - Georgia Power processed the retroactive billing adjustment! Client received $720 credit covering 4 months of overpayment. Now properly classified on Schedule GSD-1 going forward. Thanks again for all the guidance, especially Randy and Lucille for sharing similar experiences. - Beth A.