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Electric Rates and Standby Charges. Presented by: Cheryl Eakle – KPPC Jason Volz – Harshaw Trane August 13, 2014. Kentucky Electric Utilities. Typical Non-Residential Rates. General Service (demand
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Electric Rates and Standby Charges
Presented by:
Cheryl Eakle – KPPC
Jason Volz – Harshaw TraneAugust 13, 2014
Kentucky Electric Utilities
Typical Non-Residential Rates
• General Service (demand <50 kW)• Commercial• Power Service (50kW < demand)• Industrial Time-of-Day • Transmission Service
Electricity Analogy
Energy Units – Electric Service
• kWh = unit used to measure electric consumption (1 kW used for 1 hour)
• kW = unit used to measure electric demand – Usually calculated in 15 or 30 minute
intervals– Peak Demand = greatest value over the
interval
Effective Cost or “All-in Cost”
Total Electric Bill ($)
Total Electric Use (kWh)
Effective Cost or “All-in Cost”
Time-of Day Energy Charge $0.037kWh
Total Electric Charges $11,748.77
Total Energy Used 144,640 kWh
All-in Cost $0.081/kWh
More on Electric Demand
Demand Ratchet – billing mechanism selects highest demand from the current or previous months
Example – 85% of the highest demand recorded in previous 11 months
Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-080
50
100
150
200
250
300
350
400
450
500
Actual DemandMonth
Dem
and
(k
W)
Additional Billed Demand
Ratchet Clause Example
85% of Peak Demand
Some Stand-by Rates
Utility
Secondary Service ($/kW)
Primary Service ($/kW)
Transmission ($/kW)
Distribution Service (TOD) ($/kW)
Affects Ratchet
?
Duke Energy-Rate GSS(Generator Support Service) $4.51 $5.15 $1.74 $4.30 No
LG&E-Rate SS (Supplemental or Standby Service) $12.86 $12.23 $11.04 Yes
KU-Rate SS (Supplemental or Standby Service) $12.54 $11.99 $10.84 Yes
Questions on Electric Rates?
Demand Profile Prior to CHP
• 2 MW Max Load occurs during peak period• ~1 MW Base Load• 33,300 kWh daily• 365 day operation
T.O.D. Energy RatesPeak Demand - $6.11/kWIntermediate Demand - $4.51/kWBase Demand - $4.00/kWEnergy Charge - $0.0399/kWh
Annual Energy Costs$350,880 – Demand Cost
$484,965 – Energy Cost
$835,845 – Total Cost
0 4 8 12 16 20 240
500
1000
1500
2000
2500
Time (hr)
Dem
and
(kW
)
Peak PeriodBase Period
Intermediate Period
Demand Profile After CHP
• 1 MW Base Load Generator used for CHP• 24,000 kWh produced by CHP generator• Generator fuel and maintenance cost - $0.043/kWh Annual Energy Costs$175,440– Utility Demand Cost
$135,441– Utility Energy Cost
$375,448– Generator Fuel and
Operation Costs
$686,328– Total Cost
$149,516– Total Energy Savings
Annual Standby Costs$12.86/kW – Standby Rate
$154,320 – Standby Costs for 1 MW
($4,804) – Savings after standby charges
0 4 8 12 16 20 240
200
400
600
800
1000
1200
Time (hr)
Dem
and
(kW
)
Peak Period
Base Period
Intermediate Period
Unplanned CHP Outage
• CHP Generator trips at 9 AM. It is not restored for 24 hours
Annual Energy Costs$212,060 – Utility Demand Cost
$136,769 – Utility Energy Cost
$374,419 – Generator Fuel and
Operation Costs
$723,248 – Total Cost
$112,596 – Total Energy Savings
Annual Standby Costs$12.86/kW – Standby Rate
$308,640 – Standby Costs for 2 MW
($196,044) – Savings after standby charges0 4 8 12 16 20 24
0
500
1000
1500
2000
2500
Time (hr)
Dem
and
(kW
)
Base Period
Intermediate Period
UnplannedCHP Outage
Peak Period
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