I'm auditing a manufacturing facility in Savannah that has service from both Georgia Power (main plant) and the municipal electric utility (warehouse building across the street). Both are on similar demand schedules but my audit software is flagging completely different efficiency opportunities. The Georgia Power account shows potential savings in power factor correction while the municipal account shows issues with demand ratcheting that don't appear on the GP side. Are there fundamental differences in how munis structure their rates versus investor-owned utilities that I should be accounting for? This is driving me crazy trying to reconcile the recommendations.
Georgia Power vs Municipal Electric - Why is my audit showing different results?
Eleanor, municipal utilities often have completely different rate philosophies than IOUs like Georgia Power. Munis typically have simpler rate structures but may use longer ratchet periods or different demand billing determinants. Check if the municipal utility uses a seasonal ratchet (common in the Southeast) versus Georgia Power's monthly ratchet. Also, municipal power factor penalties can be more aggressive since they're trying to maximize system efficiency rather than profit. What are the actual rate schedules you're comparing?
I see similar differences here in Georgia between municipal systems and Georgia Power. The municipal utility probably buys power wholesale and has different cost pressures than GP. Many Georgia munis use 12-month ratchets during summer months while GP uses a 3-month summer ratchet. Also check if the municipal utility has different time-of-use periods or seasonal definitions. The power factor issue could be related to different measurement methods - some munis measure PF differently than investor-owned utilities. Have you confirmed both meters are reading the same parameters?