Client got hit with a huge excess facilities charge from Entergy Louisiana on their latest bill - $12,400 for "additional transformer capacity." This is a new charge that just appeared. The plant hasn't changed their electrical load significantly in the past two years. Anyone familiar with how Entergy determines these charges?
Entergy Excess Facilities Charges
Wade - Entergy's excess facilities charges are based on installed capacity versus actual usage over a rolling 12-month period. If your client's demand has dropped significantly from when the service was originally sized, they might be getting charged for "excess" capacity. Check their historical demand patterns and see if there was a major process change or equipment shutdown.
That makes sense Clyde. They did shut down one production line about 18 months ago, which dropped their peak demand from about 1,800 kW to 1,200 kW. So Entergy is basically charging them for the difference in transformer capacity? Seems pretty aggressive.