PPL just rolled out mandatory time-of-use rates for all commercial customers over 200kW here in Pennsylvania. The new Schedule GS-3 TOU has peak rates of $0.18/kWh from 1pm-6pm weekdays, compared to off-peak at $0.08/kWh. On paper, it looks like easy money for load shifting, but I'm concerned about the demand charges during peak periods - they're 40% higher than the old flat rate structure. Has anyone run detailed analysis on whether TOU actually saves money for typical commercial loads?
PPL's New Time-of-Use Rates - Opportunity or Trap?
Sylvia, I'm dealing with similar TOU rollouts here in Cincinnati with Duke Energy Ohio. The key is understanding the customer's load factor and peak coincidence. If they're already running heavy loads during traditional peak hours, TOU can be a disaster. But for customers with flexible operations - warehouses, some manufacturing - the savings can be substantial. I had one client save $23,000 in the first six months just by shifting their production schedule two hours earlier. The devil is definitely in the demand charge details though.
We've been dealing with mandatory TOU in Connecticut for three years now with Eversource. The biggest mistake I see auditors make is assuming customers can actually shift their loads. Most commercial operations have constraints they don't tell you about - employee schedules, equipment limitations, contract obligations. Before you recommend TOU, spend time on-site understanding the actual operational flexibility. I've seen too many "sure thing" savings disappear when reality hits.
Vince makes an excellent point about operational constraints. I'm finding that the most successful TOU implementations involve partial load shifting rather than wholesale schedule changes. Even moving 20-30% of discretionary loads can generate meaningful savings. The challenge is identifying which loads are truly discretionary. HVAC systems often have more flexibility than customers realize, especially with smart controls and thermal storage strategies.
Sylvia, have you looked into PPL's exemption process? Most utilities offer hardship or operational exemptions for customers who can demonstrate that TOU creates undue burden. It's not well publicized, but the applications are usually straightforward. We got a medical facility exempted from Duke's TOU because their life-support equipment couldn't be shifted. The key is filing before the mandatory implementation date.
Great discussion everyone. In Texas, we've had TOU options for years, but they're typically voluntary. The mandatory rollouts you're seeing in the regulated states create different dynamics. One thing to watch for is seasonal variations - some utilities have different peak periods in summer vs. winter, and the rate differentials can shift dramatically. Always check if there are seasonal opt-out provisions or alternative rate schedules that might work better during certain months.