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Electrical Demand Charges

9 posts
  1. Scott Hoffmann
    Scott Hoffmann avatar
    0 posts
    10/6/2014 9:10 AM
    Does anyone know how to get around demand charges for electrical usage in shoulder seasons? My electrical usage for the last month was under $300 but my demand charges were close to $1200. I have talked to the electric company without much success.

    Thanks.

    Scott Hoffmann, CGCS
    Madden's Resort
    Brainerd, MN



  2. Richard Lavine
    Richard Lavine avatar
    3 posts
    10/6/2014 10:10 AM
    Why do your chargers need to run during peak hours? You spoke to your electric provider; haven't they offered alternatives with considerable lower rates during off peak hours? Any electrician can set your chargers up with a timer and relay system to charge at off peak hours.



  3. Andy Jorgensen
    Andy Jorgensen avatar
    1 posts
    10/6/2014 10:10 AM
    If you are on an off-peak demand program, using electricity during peak demand periods would result in much higher bills. We used to run into this all the time when we would overseed and be running water during the day. We are on what they call a GST-1 schedule which provides a lower electrical rate for off-peak use ($.02/kWh) vs. on-peak use ($.17/kwh). Higher on-peak charge is basically a penalty for using when we said we wouldn't. We could go to a non-demand GS-1 account(which allows use of energy at anytime for the same rate regardless of peak or off-peak), but then all usage would be around $.07/kWh, resulting in a much higher overall bill since most of our existing power is consumed off-peak.

    It's also important to find out what hours are considered off-peak. Some utility providers have 7:00 pm as the start of off-peak, while others are 9:00 pm. Scheduling your irrigation to fall in this window would result in big savings if you are on an off-peak rate tier. So, based on the chart below, our irrigation starting at 7:00 results in a few hours of on-peak usage.

    I am hit with a bill of around $800/moth prior to even using any electricity. That is the charge of just being connected to their grid with 3-phase power.

    From the Duke Energy website for us:

    On-Peak Periods for Time of Use Rates
    On-Peak periods for TOU rates are Monday through Friday
    as follows:
    November through March
    . . . . . . . . . . . . . . . .
    6am to 10 am /6pm to 10 pm

    April through October
    . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
    Noon to 9 pm

    All other hours, including Saturday, Sunday, and six major holidays (New
    Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving
    and Christmas) and the adjacent weekday if a holiday falls on Saturday
    or Sunday, are considered Off-Peak



  4. Stephen Johnson
    Stephen Johnson avatar
    0 posts
    10/6/2014 10:10 AM
    Wish I had a choice of off peak rates.
    This is the first property that I have worked at that our electrical provider doesn't offer a alternative rate.
    In other parts of the country I have used an industrial rate which factors in off peak demand and 3 phase load.
    Here my utility bill for the shop, two wells, and two pump stations run about $120,000 to 130,000/ year.



  5. James Schmid
    James Schmid avatar
    1 posts
    10/6/2014 11:10 AM
    For me here what demand charges are based on is the highest maximum load at any one given time.

    If you can separate the uses that contribute to your maximum total load, your maximum load will be less.

    For example, if the load drawn by your well pump is 100 kW and the load drawn by your irrigation pumpstation is 100 kW and you run them both at the same time your maximum demand will be 200 kW.

    If you don't run them at the same time then your maximum load would be 100 kW, because this is the highest total demand at any given time. At least thats how it works here.

    I have reduced my demand charges by separating different uses to different time periods, which reduces the maximum demand that is required at any given time



  6. Andy Jorgensen
    Andy Jorgensen avatar
    1 posts
    10/6/2014 2:10 PM
    Stephen Johnson, CGCS said: Wish I had a choice of off peak rates.
    This is the first property that I have worked at that our electrical provider doesn't offer a alternative rate.
    In other parts of the country I have used an industrial rate which factors in off peak demand and 3 phase load.
    Here my utility bill for the shop, two wells, and two pump stations run about $120,000 to 130,000/ year.



    Before we switched to solar on our one golf maintenance building, we were shelling out about $293,000/year for power on six wells and two maintenance shops. Now that we are on solar for one of the shops, our expenses dropped to about $183,000/year. If I am on reuse, my electrical cost goes down, but my water costs goes up. For instance, I used to be able to pump 1000 gallons of water out of the ground for about $.42/1000. Reuse costs me $.91/1000. Over 100% price increase for "used" water.



  7. Scott Hoffmann
    Scott Hoffmann avatar
    0 posts
    10/6/2014 5:10 PM
    Thanks to you all for the great responses. Wasn't sure I would get any. Unfortunately we are not offered off peak rates but I think I can shut off 2-3 of my five pumps most years in Spring and Fall which sounds like will save us some demand charges, assuming they are re-calculated monthly.

    Scott



  8. Keith Lamb
    Keith Lamb avatar
    3 posts
    10/6/2014 5:10 PM
    Who is your power supplier Scott?



  9. Scott Hoffmann
    Scott Hoffmann avatar
    0 posts
    10/7/2014 11:10 AM
    Minnesota Power and Light. Off peak is only offered for heating systems and it requires a back-up source of energy.



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