Chemical plant in Louisiana has a 2.5MW cogen system on Entergy's LGS-1 rate schedule. They're generating about 1,800 MWh monthly but Entergy is only crediting them for 1,650 MWh, claiming the difference is "parasitic load." Client says their meters show full generation. Anyone dealt with cogen credit disputes at Entergy?
Chemical plant cogeneration credit dispute
Entergy can be tricky on cogen credits Pete. The parasitic load clause lets them deduct power used by the generation equipment itself - cooling pumps, controls, etc. Check if your client's generation meter is upstream or downstream of those loads. That 150 MWh difference sounds about right for auxiliary equipment on a 2.5MW system.
Gloria, that makes sense. The generation meter is right at the turbine output so it would include auxiliary loads. Still seems high though - that's 6% parasitic load. Is that normal for industrial cogeneration?
Six percent is on the high side but not unheard of for older cogen systems. Gas turbines typically run 3-4% parasitic load, steam turbines can be higher. I'd request detailed documentation from Entergy on how they're calculating the deduction. The tariff should specify the methodology and you have a right to verify their math.