Working on a KUB account here in Knoxville with a weird demand ratchet situation. Client has a 50,000 sq ft office building that normally runs 180-190kW peak demand during summer months. Last August they hit 298kW during a heat wave when all the HVAC was running full bore. Now they're stuck paying demand charges based on 85% of that 298kW peak through next summer under KUB's ratchet provision. Anyone dealt with similar KUB ratchet situations? Wondering if there's any relief available for weather-related peaks.
KUB demand ratchet question - HVAC-driven peaks
Gary, I've dealt with KUB ratchets before but not specifically weather-related appeals. The 85% ratchet is pretty standard for TVA-supplied utilities. What was the outside temperature that day? If it was truly exceptional weather (like above 95°F) you might have grounds for a hardship appeal, especially if you can show it was a one-day anomaly versus sustained high usage.
It hit 102°F that day in Knoxville, which was the highest temperature in about 8 years according to weather service records. The building's HVAC system just couldn't keep up - temperatures inside got up to 78-79°F in some areas. Demand stayed high for about 4 hours that afternoon. Every other month this year has been in the normal 180-190kW range.
We had a similar situation with Westar Energy (now Evergy) here in Kansas. Record heat day pushed demand way up, then got stuck with the ratchet. Westar actually has a provision in their tariff for "extraordinary weather events" but you have to apply within 90 days of the billing period. Might be worth checking if KUB has anything similar in their Schedule GS or whatever rate your client is on.
I'm down in Columbia dealing with SCE&G tariffs mostly, but I remember reading something about TVA having extreme weather provisions that filter down to their distributors like KUB. The key is usually proving it was a "record" weather event and not just normal summer heat. If you've got weather service data showing it was exceptional, that strengthens your case significantly.
Thanks for the suggestions. I've pulled the weather data and confirmed it was indeed a record high for that date. Going to contact KUB's commercial rates department to see what options might be available. Even if they won't waive the ratchet entirely, maybe they'll consider reducing it or shortening the ratchet period. Will report back what I find out.