I'm about ready to pull my hair out on this one. Client has been getting hammered by Georgia Power's ratchet clause for 8 months now. They had a one-time equipment startup in February that created a 1,245 kW demand spike - lasted maybe 30 minutes total. Now they're paying demand charges based on 80% of that spike (996 kW) every single month even though their normal demand is around 400 kW. That's an extra $4,500/month in demand charges! Georgia Power says tough luck, it's in the tariff. Schedule PL-1 if anyone's familiar. Has anyone successfully gotten a ratchet adjustment from Georgia Power for a situation like this?
Ratchet Clause Hell - Georgia Power Won't Budge
Karl - that's a brutal situation but unfortunately pretty typical with Georgia Power. They're one of the strictest when it comes to ratchet provisions. However, if this was truly a one-time startup situation, you might have some options. Did the customer notify Georgia Power in advance about the equipment commissioning? Some tariffs have provisions for excluding test loads or startup procedures if proper notice is given. Also, what exactly was the equipment? If it was safety-critical infrastructure, there might be regulatory angles to pursue.
Randy - no advance notice was given, which I know doesn't help our case. The equipment was a new injection molding machine for their manufacturing line. Not safety critical unfortunately. I've been through the PL-1 tariff with a fine-tooth comb and can't find any exclusions that would apply. The customer is kicking themselves for not calling Georgia Power before the startup, but hindsight doesn't help now. Are there any other approaches besides the tariff language?
I had a similar case last year with a different utility - not Georgia Power though. What worked for us was demonstrating that the high demand was not representative of the customer's ongoing electrical needs and was creating an undue financial hardship. We filed a formal complaint with the PSC showing how the ratchet was forcing them to pay for capacity they weren't actually using. It took 6 months but we got the ratchet reset. Georgia PSC might be worth a shot, especially if you can show it's harming the customer's business operations.
Another angle - is the customer willing to install power factor correction or load management equipment? Sometimes utilities will negotiate on ratchet terms if the customer makes infrastructure investments that benefit the grid. Georgia Power has some demand response programs that might give you leverage in negotiations. Also, check if they qualify for any economic development rates that might have different demand provisions.
Bob - that's an interesting idea about the power factor correction. Their PF is actually pretty poor (around 0.82) so that might be worth exploring. Elisa, I think you're right about the PSC route. At $4,500/month, it's definitely creating a hardship. The customer is actually talking about relocating to a different state partly because of this issue. I'll start putting together documentation for a PSC complaint. Thanks for the suggestions everyone.
Karl - one more thought. Georgia Power sometimes has special provisions for manufacturing customers who can demonstrate that their demand spikes are tied to production schedules. If your client can show that the February incident was an anomaly and provide data on their typical production cycles, it might help your case with the PSC. Also document any economic impact - lost orders, delayed expansion plans, etc. The more you can show real business harm, the stronger your complaint will be.
Following this thread with interest since I've got a client in a similar spot with a different utility. Karl, definitely document everything Marilyn mentioned. Also might be worth reaching out to the manufacturer of that injection molding machine - sometimes they have data on typical startup power profiles that could support your argument that this was an unavoidable commissioning requirement rather than normal operational demand.