Just got slammed by Oncor here in Dallas with an $18,000 power factor penalty for March billing. Our automatic capacitor bank controller shows we're maintaining 0.94 lagging consistently, but their meter is reading 0.72 at peak demand. Anyone else seeing discrepancies this large between your equipment and utility meters? We're on the SGS-4 rate schedule and this penalty is killing our client's budget. Thinking we need to request a meter test but not sure of the process with Oncor.
Oncor hit us with $18K PF penalty - meter reading 0.72 when capacitor bank shows 0.94
Marcus, that's a huge discrepancy. Georgia Power uses 15-minute interval metering for PF penalties on our Schedule TOU-GSA-4. I'd definitely request a meter test - in my experience the utility meter is usually right but equipment controllers can give false readings if they're not calibrated properly. Have you checked if your capacitor bank is actually switching properly during peak hours? Sometimes the contactors stick or the controller logic fails.
Derek's right about the controller issues. I had a similar case with Duke Energy in Charlotte where the client's PF controller showed good readings but the capacitors weren't actually energizing due to blown fuses. $22K penalty before we caught it. Check your capacitor bank amp meters during peak load - should see current when caps are online. Also verify your controller is reading the same phase voltages as the utility meter.
Here in San Antonio with CPS Energy, we always cross-reference the utility's interval data with our own power quality meters. The 15-minute averaging can hide momentary PF drops that cause penalties. Request the interval data from Oncor showing exactly when your PF dropped below 0.85. Sometimes it's just a few minutes during motor startup that triggers the whole month penalty under their tariff.
Thanks everyone. Requested the interval data and meter test from Oncor. Angela, you're probably right about the averaging issue. Our plant has several large chillers that start up around 7 AM which could be causing momentary drops. Derek - checked the capacitor bank and found two blown fuses on the 300 kVAR units. That explains the 0.72 reading. Expensive lesson learned about monthly inspections.
Marcus, glad you found the issue. For future reference, Georgia Power's Schedule TOU-GSA requires maintaining 0.85 PF or better during on-peak hours. The penalty is brutal - $8.50 per kVAR of reactive demand above the threshold. I always recommend installing PF monitoring alarms to catch these failures before the monthly bill hits. A $500 monitoring relay beats an $18K penalty every time.
Greg's advice is solid. Here in Newark, PSE&G's tariff allows for penalty adjustments if you can prove equipment failure. Document everything - photos of blown fuses, maintenance records, repair invoices. I got a client a 50% penalty reduction by showing the failure was due to utility voltage surge that damaged the capacitor bank. Worth pursuing with Oncor if you have evidence.
Good thread Marcus. Similar situation here in Wichita with Evergy. Their Power Factor Improvement Rider kicks in below 0.90 on our Rate 10 schedule. The key is proving when the equipment failed relative to the billing period. If you can show the fuses blew due to utility transients or equipment malfunction beyond your control, most utilities will work with you on penalties. Document everything and be persistent.