Question for the group - working with a VA hospital in Denver on Xcel Energy. They have massive emergency generator systems and I'm seeing monthly "standby service" charges that seem excessive. Schedule SG rate shows $8.50/kW standby charge but they're being billed for the full generator capacity even though it rarely runs. Is this normal for hospital emergency power, or should standby charges be based on actual usage?
VA hospital emergency generator charges
VA hospitals typically have oversized emergency systems for critical care equipment. The standby charges are usually based on contracted capacity, not usage. But check if they're being charged for testing runs - those should be treated differently than actual emergency use. Also verify the capacity they're being charged for matches what's actually installed.
Good point on the testing vs emergency distinction. I'll dig into that. The capacity billing does seem to match the generator nameplate, but wondering if they really need all that capacity contracted with the utility.
Federal facilities often over-engineer their backup power for compliance reasons. The key is making sure they're not double-paying - once for the standby service and again for actual usage during tests. Some utilities will credit test run usage against standby charges, others don't. Worth checking Xcel's specific policies on government facility backup power.