Has anyone dealt with TVA's power factor penalty calculations on their Schedule GSA tariff? We've got a client here in Nashville getting hit with a 2.5% penalty for running at 0.87 PF. The meter readings show consistent lagging power factor but the penalty seems excessive compared to other utilities. TVA claims they're using 15-minute interval data but I'm seeing some inconsistencies in their billing determinants. Anyone familiar with their specific methodology?
TVA power factor penalty question - Schedule GSA
Ed, I haven't worked TVA territory but Duquesne Light here in Pittsburgh uses similar 15-minute intervals for PF penalties. The key is making sure they're not double-counting reactive demand. Have you verified they're using the correct coincident demand window? Sometimes utilities mess up the timing between kW and kVAR measurements.
Duke Energy here in Charlotte just revised their PF penalty structure last year. They now exclude intervals below 50% of contract demand which helps smaller customers. Ed, check if TVA has any similar exclusions - might be worth challenging if they're penalizing light load periods.
Good point Derek. I pulled the tariff and TVA does have a 40% exclusion but they're not applying it correctly. They're using billing demand instead of contract demand as the threshold. On a 2000 kW contract, that's a significant difference. Preparing a formal dispute now.
TVA can be stubborn on these disputes. We fought them on a similar issue in Memphis two years ago. Document everything and cite the exact tariff language. They eventually credited us $18,000 in overcharges but it took six months. Worth the fight though.
Marcus is right about TVA being difficult. Down here in Birmingham we deal with Alabama Power and they're much more reasonable on PF adjustments. Ed, make sure you're calculating the penalty correctly too - I've seen auditors miss the compounding effect when PF drops below 0.85.
Update: TVA accepted our dispute and issued a $6,800 credit for 14 months of incorrect penalties. The key was proving they used billing demand instead of contract demand for the exclusion threshold. Thanks for the input everyone, especially Marcus' heads up about their dispute process.
Great outcome Ed! Always satisfying when persistence pays off. Mind sharing what documentation format worked best with TVA? We might have a similar case coming up with a textile plant that's been getting hammered on PF penalties.