Hotel client in Charlotte, Duke Energy Progress account. Normal peak demand 380-420 kW. April bill shows 847 kW. One fifteen-minute interval. Client had kitchen equipment test during renovation where they ran every piece simultaneously to verify electrical connections. That spike will cost $14,000 in elevated demand charges over 12 months via the ratchet. Any basis to dispute?
$14,000 demand spike from a single 15-minute interval ? disputable?
Angela here in Charlotte. Check Schedule LGS Rider DLC ? Duke has a provision for temporary unusual load conditions. If the customer can document this was a one-time construction event and not reflective of normal operations, theres a narrow path to getting the ratchet reset.
I disagree with Angela on the narrow path characterization ? Id call it a dead end. Duke denied three similar requests Ive filed in Raleigh. Their position is that demand metering measures what it measures regardless of the reason. Tariff language says maximum demand during any 15-minute interval with no exception for unusual circumstances.
William, thats discouraging. $14,000 penalty for a 15-minute equipment test seems punitive. The renovation contractor should have known to stagger the testing.
Almost identical situation at a resort in Savannah. Georgia Power Rate PLL. Renovation contractor ran every HVAC unit and kitchen appliance simultaneously. Demand spiked from 520 kW to 1,140 kW for one interval. Georgia Power would not budge on the measured demand. Only saving grace was their 60% ratchet so the floor was 684 kW rather than higher.
Check if the meter was recording during a period when the account was technically under construction temporary service rather than permanent commercial service. Some utilities have different demand provisions for construction periods.
Barbara raises a good point. Client in Pittsburgh where Duquesne Light agreed to disregard a demand spike during a documented construction period because the account was technically under CS-Construction Service rate. Once the building went to permanent service the demand history reset.
Going forward the real lesson is preventive: any auditor advising clients during renovations should insist contractors stagger equipment startup testing across multiple intervals. Run kitchen equipment one interval, HVAC the next, lighting the next. Never let a contractor fire everything simultaneously.
In Alaska we have a similar issue with seasonal operations. Canneries that start all processing equipment simultaneously in June after being idle all winter create massive demand spikes. Chugach Electric has a seasonal demand reset provision for certain seasonal commercial accounts.
Key takeaways: 1) Demand metering is precise and utilities rarely adjust measured peaks. 2) Check for construction service classifications, temporary service provisions, and unusual load condition riders ? the only realistic paths to relief after the fact. 3) Prevention is the best strategy ? advise clients to stagger equipment startups. Angela and William both have valid perspectives ? success disputing depends heavily on the specific utilitys tariff language.