Gas utility is pitching my client on moving from firm to interruptible service. The rate differential
is meaningful, roughly 18 percent on the commodity portion by my read of the tariff.
Interruptible means they can be curtailed on peak winter days. For an industrial customer with a
backup fuel that is a manageable trade. For a laundromat whose dryers and water heater are the entire
business, a curtailment means closing.
Utility's rep says curtailments have happened twice in nine years in this territory. I have no way to
verify that and I told the client as much.
What I want to know from anyone who has evaluated interruptible for a small commercial customer:
Is there language in most interruptible tariffs about notice period? Two hours versus twelve hours is
the difference between a bad day and a lost day of revenue.
And has anyone found a way to price the risk rather than just describing it? Right now my report says
save 6,400 a year, accept an unquantified risk of closure, which is not advice, it is a shrug.
is meaningful, roughly 18 percent on the commodity portion by my read of the tariff.
Interruptible means they can be curtailed on peak winter days. For an industrial customer with a
backup fuel that is a manageable trade. For a laundromat whose dryers and water heater are the entire
business, a curtailment means closing.
Utility's rep says curtailments have happened twice in nine years in this territory. I have no way to
verify that and I told the client as much.
What I want to know from anyone who has evaluated interruptible for a small commercial customer:
Is there language in most interruptible tariffs about notice period? Two hours versus twelve hours is
the difference between a bad day and a lost day of revenue.
And has anyone found a way to price the risk rather than just describing it? Right now my report says
save 6,400 a year, accept an unquantified risk of closure, which is not advice, it is a shrug.