Eddie from Tulsa. Took on a small colocation data center as a client. I thought it would be similar to other commercial accounts but the rate class situation is significantly more complex. They have redundant power systems, UPS equipment, cooling loads, and their demand profile is essentially flat 24/7. The utility has a specific data center rate in the tariff that I almost missed. Has anyone worked data center accounts and what should I be looking for?
Rate class for a data center — more complex than I expected
Vince from Hartford. Data centers are a specialized niche. The flat load profile you described is actually a significant advantage for rate negotiation — utilities like predictable base load and some offer favorable rates for it.
Meredith from Raleigh. The dedicated data center rate you found is worth analyzing carefully. Some of them have very favorable demand charge structures because the load is so predictable. Others have minimum consumption requirements that small colos cannot meet.
This one has a minimum monthly consumption of 500,000 kWh. My client is running about 180,000 kWh per month. So they do not qualify for that rate.
James from Albuquerque. Then the question is what is the best available rate for their actual consumption. Flat load, high power factor, and predictable demand are all positives. There may be an interruptible rate or a large commercial rate with a time-of-use variant that benefits their profile.
Vince from Hartford. Also check whether any of the cooling equipment is separately metered. Chiller loads are sometimes eligible for different rate treatment than the IT load. Separating them can open up options that the combined account does not have.
I did not know to look for that. Going back to the meter configuration this week.
Frank from Pittsburgh. Data centers also often qualify for tax exemptions on electricity used directly in data processing operations. That is a separate issue from rate class but worth checking in your state.