Demand Charges Billing...Meters...I want to know everything!

I've been doing some pretty serious research into demand charges and how they are billed. Very confused at this point, so I'd really appreciate any insight!

First, what would be a typical cost of the demand charge PER KW? I understand this various with what level service you have, but would love to know a ball park price. If I understand the tariff correctly, its $4.16 per KW...so if you have a 40KW demand, you'd be looking at $4.16 times 40 correct?

https://www.aepohio.com/global/util...ffs/Ohio/2012-01-01_CSP_OP_StandardTariff.pdf

(Its Schedule GS-2)

I've came across some interesting energy audits of local plants, but they unfortunately bury the demand charges into the KWH.

The next thing is the meter, I have the following one-

http://www.geindustrial.com/publibr...TNR=Installation and Instruction|GEH-7278|PDF

Its amazing how many different ways it can be programmed! From what I understand I have a 30 min. window before the meter registers the demand charge increase...so is it valid thinking that you can run a 40 KW load for 29 min, then switch it off for say two, then switch it back on for another 29 min?

I thought I saw somewhere that the meter can be programmed to catch that if so many cycles are exceeded...but at this point I need to let me head cool down!

Thanks for any input!

It's very confusing and I think they might like it that way. Some places have meters that even track the temperature during the day and will charge different kwh rates depending on that, demand, time of year...

From what I sort of gathered trying to figure it out myself(correct if wrong, might vary with area)
You have a minimum rate up to the stated KWh of the contract, kinda like a monthly charge. Then a low kwh rate that runs up that the limit or you might use less than allowed so you get charged what you used, could be a few cent a kwh. Then you have a much higher KWh rate (around 100X )when you go above that max demand on the contract, how they meter it above that and what they charge and when has to be figured out individually I think, could vary with time of day, time of year, etc.

Essentially you can be paying $.04 one minute and the next you're paying $4-10kwh...
Also, if you peak above your max rate one month they might throw you into the next level up contract or something and I doubt that's pleasant either.

Gotta love residential rates.

I was hoping we'd hear from the owners of larger shops on how their electricity bill is broken down or something to get it all a little clearer, anyone??

I am not on a Demand Meter here, nor am I on Eddison. Which is about 60% of the reason that I am still here after so many yrs.

However - where I usta werk, he told me that Toledo Edison would hold you to a peak demand point for 6 months. Or put another way - the demand was figgered on the highest peak in the last 6 months.

I know a shop that has a BIG machine on city municipality power, and they were getting charged demand by the month. They only ran that machine sporatically. So (if orders would allow them to swing it this way) they would light it up the first of a month, and then the last of the month. Then set idle untill after the end of the next billing cycle.
I was recently told that the city is giving them grief over that currently, and may be looking to change their policy...

I am not privy to current rates, but 15 yrs ago when we were looking to build a building, it was most likely to have been on Edison, and before we built - I called up the devil to make a deal - before building! The devil wouldn't deal, and I didn't build!

But from the discussion that I had with the rep - my power bill would likely have gone from the $.08 I was paying on the co-op single ph (here) to in the $.24 area on their 3ph including demand - out on the main road.
About 1/3 of that was demand.

That was just a WAG from the rep as there was no demand meter here to base his assumptions on. Just looking around at the equipment at the time.


Hydro costs should be a MAJOR factor in the equassion as to where you locate your business - if it requires much more than general lighting! I figger the difference in light bills is about the same as the payment on a new building for us.


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Think Snow Eh!
Ox

Thanks OX! Right on SND, I was hoping more shop owners could chime in with what they are paying.

How I understand how I am setup is alot like OX said...I have up to 10KW where there are no demand charges, and the monthly charge is less. (Small General Service) Go to 11KW, and you get bumped up to the next level where you pay more per month regardless, and then on top of that the demand charges.

No problem if you are running equipment all the time, but in my case with the one process I only see it being ran a couple times a month at most. Hence the demand charges being very painful.