Convention resort in Savannah, Georgia Power Rate PLL. Normal daily operations demand runs 680 kW. But during large conference events ? 3-4 times per year ? the ballroom lighting, AV equipment, kitchen production, and additional HVAC for 2,000 attendees pushes demand to 1,050 kW. That event-driven spike sets the ratchet at 630 kW (60%) for months after the event. The resort is paying premium demand charges 8 months of the year because of 4 conference weekends.
Resort demand charges ? event-driven spikes from conferences
Pamela ? resort and convention center demand profiles are notoriously spiky. In Jacksonville Ive audited three convention hotels. The approach that works: install a demand controller linked to the BAS that monitors total building demand and automatically stages non-critical loads during event peaks. Ballroom pre-cooling before attendees arrive, kitchen equipment sequencing, parking garage ventilation cycling. You cant eliminate the event demand but you can shave 100-150 kW off the peak.
Henry ? 100-150 kW off a 1,050 kW peak brings it down to 900-950 kW. The ratchet at 60% would drop from 630 kW to 540-570 kW. Thats still well above normal daily operations of 680 kW so the ratchet floor would only matter during very low-demand months. Actually wait ? 570 kW ratchet floor is BELOW the normal 680 kW daily operations. So reducing event peak to 950 kW means the ratchet never actually bites because daily operations exceed the floor. That changes the math completely.
Pamela ? youre right. If normal daily operations (680 kW) exceed the ratcheted event peak (60% of 950 = 570 kW), the ratchet becomes irrelevant. The demand charge is always based on actual daily peak rather than the ratcheted event peak. The demand controller doesnt need to eliminate the event spike ? it just needs to reduce it enough that 60% of the reduced spike falls below normal operations. Thats a much more achievable target.
James nails the analysis. The target isnt eliminating the spike ? its reducing the spike enough that the ratchet floor falls below normal operations. For my resort that means reducing event peak from 1,050 to anything under 1,133 kW (because 60% of 1,133 = 680 which is normal operations). Were already below that target even without a demand controller. Wait ? that means the current 1,050 kW peak with 60% ratchet produces a 630 kW floor which is BELOW normal 680 kW. The ratchet isnt actually costing them anything!
I rechecked the bills more carefully. The demand charges ARE based on actual monthly peak (680-720 kW range) in non-event months, NOT on the ratcheted floor (630 kW). The ratchet isnt the problem. The problem is that the resort is on Rate PLL which has a higher demand charge than Rate PLM. Rate PLM has a lower demand charge per kW for accounts with high load factors. The resort qualifies for PLM based on their load profile. The rate misclassification ? not the event spikes ? is what costs them $34,000 annually. Completely changed the audit direction.