Strange situation - have a client with a retail building that's been vacant for 8 months, minimal electrical usage (just security lighting and some HVAC for freeze protection), but Duke Energy is still billing a 45 kW demand charge every month based on an old ratchet from when the store was operating. Usage is under 500 kWh/month now. Is there any way to get the ratchet reset for a vacant building?
Demand Charges on Vacant Buildings?
Dale, you might want to check if Duke has a "vacant building" rate or if they allow contract demand reductions for unoccupied properties. Some utilities will waive or reduce demand charges if you can prove the building is genuinely vacant.
Margaret, I looked through their tariffs but didn't see anything specific about vacant buildings. The account is on General Service rate GS-1. Contract demand is only 25 kW but the ratchet from last March is 45 kW, so they're billing the higher amount.
Dale, try calling Duke's commercial customer service and explain the situation. They sometimes have unpublished policies for vacant buildings, especially if the customer has been paying bills on time. Worst case, they might allow a contract demand reduction.
Thanks Greg. I called and spoke with a supervisor. They agreed to reduce the contract demand to 15 kW starting next month, which should eliminate the ratchet issue since actual demand is running about 8-12 kW. They said it's a one-time accommodation for vacant commercial properties.
Great outcome Dale! Good to know Duke will work with customers on vacant building situations. I'll keep that in mind for future reference.