Primary metering — when is it actually worth the switch?

Started by Sarah Chen — 2 months ago — 56 views
APS has been inconsistent on secondary service classification. I've had two accounts where the physical installation was primary but they billed secondary. Always verify the meter data.
Client has 3,200 kW peak demand on secondary service. Utility offered primary metering at ~$180K one-time cost (customer owns transformer) with approximately $38K/yr in savings. Payback looks like 4.7 years. At what threshold do you recommend clients make the switch?
Under 5-year payback is almost always worth it if the client plans to hold the property 7+ years. Key variables to pressure-test: (1) future growth in demand (if they add load, savings grow), (2) transformer maintenance cost (typically $2-4K/yr you should net out), (3) insurance adjustment for owning the transformer. At 4.7 years with no growth assumption, I'd recommend it.