Quick question for the group. Client in Corpus Christi is being offered AEP Texas primary service at 13.8kV. Current secondary rate is 7.8¢/kWh, they're quoting primary at 7.2¢/kWh. Monthly usage runs about 180,000 kWh. Customer would need to install and maintain their own 750kVA transformer. Anyone familiar with AEP Texas primary discounts? Trying to verify this is legit and not just a sales pitch.
AEP Texas Primary Discount Calculation
Vivian, those numbers sound about right for AEP Texas. We see similar primary discounts throughout their territory. At 180,000 kWh monthly that 0.6¢ difference saves $1,080/month or about $13,000 annually. Transformer cost is probably $25,000-30,000 installed so payback looks reasonable.
Marcus, thanks for confirming. The transformer quote came in at $28,500 including installation and protective equipment. Client is looking at about 2.2 year payback which seems pretty good. Main concern is they're leasing the building so want to make sure the investment makes sense for a 5-year lease term.
For a leased facility, make sure they can take the transformer with them or get reimbursement from the landlord if they relocate. We had a client in Hartford lose a $35,000 transformer when their lease wasn't renewed. The economics still worked but it was an expensive lesson about exit planning.