Hospital emergency generators - standby charges getting out of hand

Started by Stuart A. — 5 years ago — 3 views
Working with a 400-bed hospital in Georgia and their standby/backup power charges have tripled in the last 18 months. Georgia Power is billing them under Schedule P-4 but I'm seeing inconsistent applications of the standby demand charges. Some months they're charging for the full generator capacity, other months just partial. Anyone else seeing utilities get more aggressive on standby billing for hospitals?
Stuart, we're seeing the same thing nationwide. Utilities are under pressure to recover costs and hospitals are easy targets because they can't exactly shut off life support. The key is understanding how your utility defines 'standby service' - some include it automatically, others require you to disconnect primary service. Georgia Power's been particularly aggressive lately.
Had a similar issue with Xcel Energy in Colorado. Hospital was paying standby charges for generator capacity they never actually used for backup - turns out it was classified wrong as 'supplemental' service instead of true emergency backup. Saved them $4,200/month once we got it reclassified. Document every generator test and actual emergency usage.
The regulatory angle might help too. Most states have specific rules about essential services for hospitals. If the utility is double-charging for capacity they're required to provide anyway, that could be a PSC complaint. Worth researching your state's hospital service regulations.