We have a textile manufacturing client in Columbus GA pulling about 2MW average demand. They're currently on TOU-GSD-8 but Georgia Power is pushing them to move to TOU-GSD-9. The rep claims it'll save them money but the demand charges look higher on 9. Anyone familiar with these schedules and when the crossover point makes sense?
Georgia Power Schedule TOU-GSD-8 vs TOU-GSD-9 for 2MW textile plant
Mitchell, I've seen this with several Georgia Power industrial accounts. TOU-GSD-9 typically makes sense above 1.5MW if your load factor is decent (above 60%). The key is the energy rates are lower on 9 but demand charges are higher. What's their current load factor running?
Load factor is around 73% most months, sometimes dips to 68% during maintenance shutdowns. Their peak usually hits during on-peak hours unfortunately - around 2-3 PM when the looms are all running.
With a 73% load factor at 2MW, TOU-GSD-9 should definitely save them money. We moved a similar sized paper converter in Augusta last year and they're saving about $1,800/month. The energy savings more than offset the higher demand charges at that load factor.
Good analysis from Ed and Steve. At 2MW with 73% load factor, the math usually works in favor of TOU-GSD-9. Just make sure to verify the voltage level - some textile plants are still on secondary voltage which changes the rate structure slightly. Also check if they qualify for any economic development riders that might affect the comparison.