I've got an interesting situation with PSE&G. Client is a seasonal business (ice cream manufacturing) that shuts down completely December through February. Their demand ratchet is carrying over from November peak of 1,240 kW through the shutdown months. PSE&G says this is normal, but shouldn't the ratchet reset when there's zero usage? Schedule GP tariff.
PSE&G ratchet reset - seasonal customer
Linda makes a good point. I had a client with similar situation - they were able to negotiate a seasonal service agreement. Saved them about $15,000 per year in demand charges during shutdown months. The downside is reconnection fees and time to restart.
Thanks everyone. I looked into the seasonal disconnect option. PSE&G does offer it but there's a $850 disconnection fee and $1,200 reconnection fee each year, plus 30-day notice requirements. With demand charges at $18.50/kW, we're paying about $22,940 for those three months. So disconnection would save about $20,890 annually.
Albert, that's a significant savings. The 30-day notice shouldn't be a problem for a seasonal business since you know your shutdown schedule in advance. Have you discussed this with the client? $20K+ annual savings usually gets their attention.
Val, yes, we presented it to the client. They're concerned about the reconnection timeline and potential issues with refrigeration equipment startup. They're going to test a controlled shutdown this year and see how it goes. Might implement for next season.
Smart approach Albert. Ice cream manufacturing requires precise temperature control during startup. Better to test the process before committing to annual disconnections. Keep us posted on how it works out.
Albert, that's actually correct billing. Most utilities don't reset the ratchet just because of zero demand months. The ratchet protects their infrastructure investment regardless of whether you're using it. However, some utilities have special seasonal rate schedules that might help.
Robert's right about the infrastructure protection, but Albert, you should check if PSE&G has a seasonal disconnect option. Some utilities allow complete disconnection during off-season months which can eliminate demand charges entirely. Worth investigating.