We have a steel fabrication client on Duke's Schedule I-3 (secondary voltage) pulling about 850 kW demand consistently. Their load factor is running around 68% which seems decent, but I'm wondering if they'd benefit from switching to I-2 (primary voltage). The voltage discount would be substantial but there's also the transformer ownership responsibility. Anyone done this analysis recently?
Duke Energy Rate Schedule I-3 vs I-2 - When to Switch?
Eugene - I had a similar situation with a foundry in Charlotte last year. The break-even point for Duke is usually around 750-800 kW if you can maintain decent load factor. At 850 kW steady, you're probably looking at $2,800-3,200 monthly savings even after factoring in transformer maintenance costs. The key is making sure they understand they're now responsible for primary side equipment.
Check their power factor too - if they're getting dinged on Schedule I-3 for low PF, the savings could be even better on I-2. Duke's penalty structure is more lenient on the primary schedules. I've seen manufacturers save $50K+ annually just from the voltage discount alone.
Thanks both! PF is actually pretty good - around 0.94 - so no major penalties there. Rob, good point about the transformer responsibility though. I'll need to factor in not just maintenance but potential replacement costs down the road. Still sounds like it's worth pursuing.