Derek from Charlotte. Seasonal food processor, full capacity August through December, about 20 percent of peak January through July. The ratchet clause bills them near peak demand for all 12 months even though they are essentially idle for seven of them. Any rate structure or argument that helps?
Ratchet on a seasonal client — total mismatch
Walt from Pittsburgh. This is one of the most painful mismatches in commercial billing. A few utilities have seasonal rate structures specifically for operations like this but most do not. Worth checking the tariff carefully for any seasonal provisions.
Terry from Knoxville. Check whether there is an interruptible or curtailable rate with a different demand calculation method. Some of those schedules calculate demand on a rolling basis with a lower ratchet percentage.
Karen from Boise. Have you considered recommending a special contract request? At the scale you describe there might be a basis for negotiating a custom demand structure directly with the utility.
Karen I had not gone down that road. The client's annual spend is around $280,000 which might not be large enough for a special contract conversation but worth a call to the large accounts team.