Utility Tariff Analysis
If you can’t explain your utility invoice, what the charges represent, which utility tariff you take service under or whether there are alternative tariffs that may be applicable to you. Don’t worry, you are not alone. The vast majority of customers can’t. Understanding your invoice and the basic components of peak demand, power factor penalties/credits, energy charges, fuel adjustments, etc. isn’t part of your everyday activity and you would not be expected to be familiar with these complexities. Having an expert than can decipher their meaning and consider where there might be opportunities to reduce these charges is a valuable asset.
Often reductions can be had by:
- Staying on the same tariff, but implement energy efficiency enhancements to lower your peak demand and energy consumption.
- Installing a generation project that reduces on-peak demand and energy consumption and may also allow changes to a time of day tariff.
- Installing power factor correction equipment to not only eliminate penalties, but create credits.
- Leveraging installed generators to take advantage of interruptible programs to created credits.
- Swapping tariffs because your load profile supports a change.
- When you are considering a generation project, you need to thoroughly understand the current and alternative rate structures to be able to accurately model and capture both the benefits and consequences of that project.
- You need to know how the current pricing and that of a new utility tariff will impact the project.
- If you are considering prime power or co-generation projects, you will need to understand if your utility has a backup power tariff. If there are substantial fee for preplanned use and a severe penalty for unplanned use, you may also have to consider the desirability of standby generation .
- If you are considering a peaking , peak shaving or interruptible use of your standby generation , you will definitely need to know how many hours you may be called upon to operate, who decides, who pays for fuel and what are the credits and penalties for non-performance.
- If you plan a green energy project , you will need to understand whether net metering is possible.
- For all projects, you will need to understand your interconnect rights and the utilities requirements.
Contact IEA and one of our experts can assist you in navigating the sea of utility tariffs, how they impact your utility bills and opportunities for gains by looking at energy infrastructure projects and alternative tariffs.
Most utilities publish their prices and terms of service under tariffs approved by the state level utility boards. These tariffs are public information and are usually available on the utilities website. Depending on your location you be receiving power direction from a regional transmission independent system operator (ISO), their tariffs are approved by the Federal Energy Regulatory Commission (FERC), since they involve interstate commerce, and are usually available on the ISO’s website.