Anyone else dealing with new TVA requirements for power factor correction on General Power accounts? Got a notice that all GP customers with average monthly PF below 0.95 need to install automatic correction by December 2020 or face increased penalties. This affects about 40% of my client base here in East Tennessee. The penalty structure jumps from $0.60/kVAR to $1.20/kVAR for non-compliance. Has anyone successfully negotiated extensions or alternative compliance methods?
TVA General Power Schedule - New PF correction requirements?
Walt, I heard about this but haven't seen the official notice yet. My Nashville clients are all TVA too. Do you have the specific tariff revision number? This sounds like a major change that should have required public hearings. The December timeline seems really tight for equipment procurement and installation, especially with COVID supply chain issues.
This is Revision 47 to Schedule GP, effective January 1st. I've got three clients in Knoxville affected by this. TVA is claiming it's not a rate increase since the penalty structure existed before, they're just enforcing it more strictly. The automatic correction requirement is new though. I'm recommending clients file formal objections through the Tennessee Regulatory Authority.
Terry, thanks for the revision number. I'm seeing installation costs of $15,000-$25,000 for automatic correction systems on my mid-size accounts. For some clients, it's cheaper to just pay the penalties for a few years. The ROI calculation is tricky because it depends on their load variability. Manufacturing clients with consistent power factor might not need automatic systems.
We've got several TVA accounts here in North Alabama facing the same issue. Talked to a TVA rep who mentioned they might allow fixed capacitor banks instead of automatic switching for smaller accounts under 500 kW. The key is proving your load is relatively stable. Worth asking about if the automatic system cost is prohibitive.
Albert's right about the fixed cap option for smaller loads. I've been working with TVA engineering on this. They want to see 12 months of interval data showing consistent power factor patterns. If your monthly PF only varies by +/- 0.05, they'll usually approve fixed correction. The permit process is much simpler too. Just submitted applications for two MLGW accounts that should qualify.
Amir, that's great intel. Most of my affected accounts are pretty stable manufacturing operations. The grocery stores and restaurants would need automatic switching due to load swings, but the machine shops and fabrication plants could probably use fixed banks. Do you know if TVA has published guidance on the application process for fixed correction approval?
They haven't published anything formal yet, but the process involves submitting Form TVA-1847 with your load analysis. The key metrics they want are monthly average PF, standard deviation, and peak demand correlation. I can email you a sample application if you want to PM me your contact info.
This is affecting Georgia Power territory too, though not as aggressively as TVA. We're seeing increased enforcement of existing PF requirements rather than new mandates. Several of my Atlanta clients have received correction notices after years of paying penalties without issues. Seems like utilities are getting more serious about power quality systemwide.
Greg, I think you're right about increased enforcement. TVA mentioned during a recent workshop that they're trying to improve overall system efficiency. Poor power factor customers create reactive power burdens that affect everyone. From their perspective, it makes sense to push correction rather than just collect penalty revenue.
Update on the TRA filing: They've agreed to review the implementation timeline but not the technical requirements. Looks like TVA will extend the deadline to June 2021 for accounts that submit correction plans by September 2020. Not ideal but gives more time for equipment procurement and installation scheduling.