Got notice from FirstEnergy Ohio Edison that they're changing how they measure power factor starting January 2014. Instead of monthly average they're switching to "coincident power factor during peak demand interval." This could be a big problem for clients with variable loads. Has anyone seen similar changes in other FirstEnergy territories? Trying to figure out financial impact before the switch happens.
FirstEnergy changed PF measurement - anyone else affected?
Jim, saw the same notice here in Cleveland with Cleveland Electric Illuminating. This is going to hurt manufacturing clients badly. A plant might have good PF most of the month but if they have poor PF during their peak 15-minute interval, they get penalized on the entire bill. It's like they're double-dipping - penalty on demand charges plus the PF adjustment. Seems like a cash grab to me.
Frank's right - this is a money grab. Duquesne tried something similar in 2011 and backed down after the industrial customers raised hell with the PUC. The problem is most clients don't understand the change until they get hit with huge penalties. I'd suggest filing comments with PUCO now before the tariff becomes effective. Need to get manufacturing associations involved too.
Walt makes a good point about industrial associations. I'm reaching out to Ohio Manufacturers Association and Cleveland Engineering Society. If enough people complain they might delay implementation or modify the tariff language. The current proposal has no grandfathering for existing capacitor installations that were sized for the old measurement method.