Got a client in Huntsville currently on Alabama Power Schedule LPL (Large Power Low Voltage). They're served at 480V from a utility-owned transformer connected to the 13.8kV distribution system. The monthly bill is running about $28,000 and I'm wondering if we can get them reclassified to primary service to capture that voltage discount. The facility has room for customer-owned transformers and the electrical load would justify the investment. Has anyone successfully gotten Alabama Power to reclassify a secondary customer to primary? What's their process like?
Alabama Power Secondary Service Reclassification Question
Albert, I haven't dealt with Alabama Power specifically, but here in Missouri with Ameren, the reclassification process requires an engineering study and usually a significant contribution for new primary infrastructure. The customer has to demonstrate they can handle the higher voltage safely and maintain their own transformers. The voltage discount might be 3-5% but you've got to factor in the transformer purchase, maintenance costs, and any utility connection fees. On a $28K monthly bill, the numbers might work depending on the discount percentage.
I've worked with similar situations down here in Texas with CenterPoint Energy. The key question is Alabama Power's specific tariff language around primary service requirements. Some utilities require minimum demand thresholds for primary service - like 1000kW or higher. If your client doesn't meet the minimum, reclassification might not be possible regardless of their willingness to own transformers. I'd start by reviewing Schedule LPH (their primary schedule) to see what the qualifications are.
Vivian is right about checking the minimum thresholds. Here in Cincinnati, Duke Energy requires 750kW minimum demand for primary service eligibility. But even if Alabama Power allows the reclassification, make sure you understand their transformer ownership requirements. Some utilities want the customer to own not just the service transformers but also any switching equipment. That can add significant upfront costs that might not justify the monthly discount savings. Run a detailed cost-benefit analysis before recommending the switch.