I've got a retail chain client with 47 locations across Georgia, Alabama, and Florida. Most locations are served by Georgia Power, Alabama Power, or Duke Energy Florida. The issue I'm finding is inconsistent power factor billing - some locations are being charged power factor penalties while others with similar equipment and usage patterns are not. The penalties range from $45-180/month per location. Has anyone dealt with inconsistent power factor billing across multiple utilities for the same client type?
Multi-site client with inconsistent power factor charges
Power factor billing varies significantly between utilities, even within the same corporate family. Georgia Power typically starts charging penalties when power factor drops below 85%, Alabama Power at 80%, and Duke Energy Florida at 90%. The equipment and usage might be similar, but the local power quality conditions can be different. I'd recommend getting power factor readings from each location and comparing them to each utility's specific tariff thresholds. Some locations might benefit from power factor correction equipment.
I've seen this exact scenario with restaurant chains. The inconsistency often comes down to how each utility measures and bills power factor, plus local electrical conditions. Some utilities use average power factor over the billing period, others use instantaneous readings. Also check if any locations have newer LED lighting or VFD equipment that might be affecting power factor differently. For the locations getting penalized, calculate the payback period for power factor correction capacitors - usually 18-24 months for retail facilities.