Seeing more clients crossing demand thresholds that trigger different rate classifications. Most utilities have breaks around 50 kW, 100 kW, 500 kW, and 1000 kW where rate structures change significantly. Question for the group - do you proactively monitor client accounts for threshold crossings or wait for them to contact you? Also interested in strategies for managing accounts that hover right around threshold levels.
Small vs Large General Service threshold crossings - when do you trigger rate audits?
Randy D. - great topic. I do quarterly reviews of all client accounts specifically looking for demand threshold issues. Had a client cross from small general service to large general service at the 100 kW break and their rate jumped significantly. PSE&G in New Jersey has particularly wide gaps between rate classes at the threshold levels.
I set up automated alerts in my client management system for accounts approaching thresholds. Dominion Virginia has breaks at 50 kW and 500 kW where rates can change substantially. The key is understanding billing demand methodology - some utilities use rolling averages while others use single month peaks. Makes a huge difference in rate stability.
Sandra P. - excellent point on billing demand methodology. PG&E in California uses 12-month rolling averages for rate classification which provides more stability. But utilities like SCE use single month peaks that can cause clients to bounce between rate classes. Had one client alternate between Schedule TOU-GS-2 and TOU-GS-3 for six months before we implemented load management.
Pete T. - that bouncing between rate classes is a nightmare for budgeting. BGE here in Maryland has a 6-month minimum stay requirement once you cross into a higher demand rate class. Prevents gaming but also penalizes legitimate load reductions. Do you recommend load management strategies to keep clients below thresholds?
Sandra W. - depends on the rate differential and client operations. If crossing from Schedule A-6 to A-10 saves $800/month, it might be worth accepting slightly higher demand. But if it's marginal savings with much more complex rate structures, load management to stay below the threshold can make sense. Always run the numbers both ways.
Good insights everyone. The complexity increases with TOU rates where thresholds apply differently to on-peak versus total demand. Anyone dealt with seasonal threshold variations? Some utilities have different break points for summer versus winter rate classifications.
Randy D. - Georgia Power has seasonal variations on their demand thresholds for TOU rates. Summer threshold for Schedule TOU-GSD-8 is 500 kW but winter is 300 kW. Requires year-round monitoring and sometimes seasonal load shifting strategies. Makes rate audits more complex but also creates optimization opportunities for savvy clients.
Dave C. - those seasonal thresholds are tricky. We had a client in Savannah get surprised by Georgia Power's winter threshold change. They planned around the 500 kW summer level but got bumped to a higher rate class in December when demand hit 350 kW. Cost them an extra $1,400 that month before we caught it.
This thread is gold for rate audit best practices. CPS Energy in San Antonio has threshold breaks at 50, 300, and 1000 kW with significant rate jumps at each level. I've started including threshold analysis in all client proposals to show the value of ongoing monitoring. Prevention is much cheaper than reactive fixes.