Working on a benchmarking analysis for a client in the manufacturing sector here in Indianapolis. They're on IPL's Large General Service tariff (LGS-2) and their usage seems way off compared to what I'd expect for their industry. Anyone have solid benchmark data for metal fabrication facilities? I'm seeing 450 kW average demand but their per-unit production costs suggest something's not right. Would love to compare notes with someone who's worked similar accounts.
IPL Commercial Benchmarking - Anyone Have Manufacturing Data?
Greg, I've got some decent manufacturing benchmarks from my Seattle clients, though most are on PSE. Metal fab typically runs 380-520 kW depending on shop size and equipment age. What's their square footage and approximate workforce size? That might help narrow down if 450 kW is reasonable. Also check their power factor - I've seen some fab shops get hammered with penalties that throw off the whole cost analysis.
David's right about power factor issues. I had a Phoenix metal shop that looked efficient on paper until we discovered they were getting hit with 12% penalties every month. Are you seeing any reactive power charges on their IPL bills? Also, 450 kW might be normal if they're running older plasma cutters or induction heating equipment.
Thanks both! It's a 85,000 sq ft facility with about 120 employees. Power factor looks decent at 0.92, so that's not the issue. They do have some older induction equipment that might explain the higher demand. Sarah, did your Phoenix client see significant savings after addressing the power factor penalties?
Oh absolutely! After installing power factor correction capacitors, their monthly bill dropped by $2,800-3,200. APS charges pretty aggressively for poor power factor, so it was a quick payback. Your client's 0.92 PF is actually pretty good for metal fab. I'd focus on the demand side - maybe look at their production schedules and see if they're running equipment during IPL's peak hours unnecessarily.
Greg, for Sacramento area manufacturing I typically see 3.8-4.2 kW per thousand square feet for metal fabrication. Your client at 450 kW in 85k sq ft works out to about 5.3 kW/1000 sq ft, which is definitely on the high side. Might be worth doing a detailed equipment inventory to see what's driving the excess demand.
Jennifer, that's exactly the kind of benchmark I was looking for! 5.3 vs 4.0 kW/1000 sq ft is a significant difference. I'll dig deeper into their equipment list and operating schedules. Thanks everyone for the input - this gives me a much better baseline to work from.