Just got word that the Missouri Public Service Commission approved Empire Electric's new demand response tariff Schedule DR-1. Rate goes into effect October 1st with a $3.50/kW credit for participants but also adds a $25/month enrollment fee. Has anyone else in their territory seen the details on this? My client in Joplin is asking if it's worth switching from the current interruptible rate. The math looks questionable with that monthly fee eating into savings for smaller commercial accounts.
Missouri PSC approving new demand response tariffs - anyone else seeing this?
Haven't seen Empire's specific tariff but Duke Energy Carolina filed something similar here in Charlotte last month. Their version has a $40/month fee but higher credits - $4.25/kW during summer peak periods. The breakeven point seems to be around 150kW average demand. Below that and the monthly fee kills any benefit. These utilities are getting creative with how they structure these programs.
CPS Energy down here in San Antonio rolled out their Smart Choice demand response program earlier this year. No monthly fee but the credit is only $2.75/kW and they can call events up to 15 times per year. The key thing I've learned is to really dig into the event history - some utilities are calling way more events than others. Empire might be conservative starting out but that could change.
Good point on event frequency. FirstEnergy here in Ohio has been pretty aggressive with their demand response calls this summer. They've triggered events 12 times already since June. At least Empire's tariff caps it at 10 events per year which gives you some predictability. That $25 monthly fee still bothers me though - it's basically a tax on smaller participants.
Thanks for the feedback everyone. I ran the numbers and for my client's 180kW facility the breakeven works out to about $480/year in net savings after the monthly fees. Not huge but decent. The bigger concern is operational - they're a small manufacturer and getting caught off guard by an event could cost them a production run. Anyone know if Empire gives much advance notice?
Georgia Power gives 2-4 hours notice on their demand response events, sometimes less if it's a real emergency. The automated calls and texts help but you really need someone monitoring it during business hours. For a small manufacturer I'd be hesitant unless they have very flexible operations or good backup power options.
Empire's tariff filing mentioned 4-hour advance notice as the standard with 1-hour minimum for emergencies. Still risky for manufacturing but better than some utilities. The other thing to watch is the penalty structure - some programs hit you hard if you don't actually reduce load during an event.
Empire's penalty is $8.50/kW for non-performance which is pretty steep. I think we'll pass on this one for now and wait to see how it plays out for other customers. Appreciate all the insights - this forum is invaluable for staying on top of these regulatory changes.