Fellow auditors, I'm pulling my hair out over a Westar Energy account in Wichita. This 180-unit apartment complex is seeing demand charges of $3,200-4,800 per month, even though total kWh usage is reasonable for the building size. The master meter is on Schedule MGS-3 and the demand keeps spiking during evening hours when everyone's home cooking and running AC. Property owner is hemorrhaging money and threatening to convert to individual meters. Has anyone successfully challenged demand charges on apartment master meters? The load profile seems reasonable for residential usage patterns.
Westar demand charges destroying apartment profitability
Rachel, demand charges on apartment master meters are brutal. Wisconsin Public Service has similar issues with their Schedule Cg-4. The problem is utilities treat large apartment buildings like commercial/industrial accounts, not residential. Have you analyzed the 15-minute interval data to identify exactly when the peaks are occurring? Sometimes it's just a few appliances cycling on simultaneously that create the spike.
We see this all the time with Puget Sound Energy up here. The key is load management strategies - working with property management to stagger major appliance usage, upgrading to high-efficiency units, and sometimes installing load control devices. Also check if Westar offers any residential master meter rate schedules without demand charges. Some utilities have special rates for multi-family housing.
David's right about rate schedule options. CPS Energy in San Antonio has Schedule RTOU-MD for master-metered apartments that spreads demand costs across time-of-use periods rather than straight demand charges. Rachel, request a rate analysis from Westar - they might have a better tariff option that wasn't offered initially. Property owners rarely get the optimal rate schedule without specifically asking for it.
Another angle to consider - is the building's electrical system properly balanced across phases? I've seen cases where unbalanced loads create artificially high demand readings. TXU Energy in Dallas actually sent out an engineer to verify our load calculations when we challenged similar demand charges. Turned out the building had phase imbalance issues that were correctable.
Great suggestions everyone. I've requested the 15-minute interval data from Westar and will analyze the peak patterns. The building is only 8 years old, so electrical system should be properly designed, but I'll have them check phase balance. Also going to push for a rate schedule review - the property was originally on a different tariff when it was commercial office space before conversion.
Rachel, don't overlook power factor issues either. Rocky Mountain Power here in Utah has specific power factor requirements on master meter accounts. Poor power factor can inflate demand charges significantly. If the building has older motors, pumps, or lighting systems, power factor correction might reduce both demand charges and total billing.
Connie makes a good point about power factor. PG&E in Fresno has been cracking down on commercial accounts with poor power factor. For apartments, the biggest culprits are usually older pool pump motors and central laundry equipment. Sometimes adding power factor correction capacitors can cut demand charges by 15-20% or more.
I'm dealing with similar issues on AEP accounts in West Virginia. One thing that helped was getting the utility to install a demand meter with a longer averaging period. Some meters use 15-minute windows, others use 30-minute. The longer averaging period can smooth out brief spikes that don't reflect actual sustained demand. Worth asking Westar about meter configuration options.
Rachel, any update on your analysis? I'm curious what the interval data revealed. We're seeing more apartment owners consider individual metering just to escape demand charges. Montana-Dakota Utilities actually offers incentives for master meter to individual meter conversions, but the upfront costs are usually prohibitive for existing buildings.
This is Randy from MLGW territory - I've been following this thread with interest. Rachel, if your interval data analysis shows the demand spikes are from legitimate simultaneous usage rather than system issues, you might want to look into tenant education programs. Some properties have had success with simple measures like asking tenants to avoid running dishwashers, dryers, and AC simultaneously during peak evening hours. Small behavioral changes can have big impacts on master meter demand.