Working with an auto parts manufacturer in Columbus who's considering AEP's interruptible rate schedule. They can shed about 60% of their load during peak events by shutting down non-critical production lines. Current demand charges are killing them - about $8,500/month. Anyone familiar with AEP's interrupt frequency and how reliable the advance notice is?
Interruptible Rate Questions - AEP Ohio
Sylvia - AEP Ohio usually gives 2-4 hours notice, sometimes less during real emergencies. In 2013 they called maybe 12-15 interruptions, most during July/August heat waves. The rate savings can be substantial but make sure your client can actually curtail that much load reliably. AEP doesn't mess around with penalties if you don't respond.
Thanks Norm! That's more frequent than I expected. What kind of penalties are we talking about if they can't curtail when called?
It's been a while since I looked at the tariff details, but I think it's something like 3x the regular demand charge rate for the amount you fail to curtail. So if they're supposed to drop 500 kW and only manage 300 kW, they get penalized on that 200 kW difference. Pretty steep.