Working with a large manufacturing client (2.5MW peak demand) on Duke Energy Carolinas Schedule LGS. They have a demand ratchet clause that's supposed to be 75% of the highest demand in the previous 12 months, but Duke appears to be applying 85% consistently. Over 3 years this has resulted in about $67K in excess demand charges. The client's energy manager never questioned it until now. Anyone familiar with Duke's LGS demand ratchet calculations?
Large Industrial Customer - Duke Energy Demand Ratchet Issue
I've seen this exact issue with Duke Energy! Check if your client has any power factor penalties that might be affecting the ratchet calculation. Duke sometimes applies the ratchet to the billing demand (which includes PF adjustments) rather than the actual measured demand. Also verify which months they're using for the 12-month lookback - some billing systems incorrectly include estimated reads or partial months during outages.