Electricity Delivery in ERCOT Avoiding Self Inflicted Wounds Who Is 5?
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Electricity Delivery in ERCOT Avoiding Self Inflicted Wounds Who is 5? International Presence Regional Expertise Helping Thousands Supplier DNA 60+ team members, Deregulated energy Includes commercial & Founded by energy HQ in Irving, Texas. experts with in-depth industrial clients, as well CEO’s, COO’s, corporate Staff in TX, NY, NJ, MD, market knowledge and as government entities energy managers and OH, PA & Mexico experience throughout commodity traders the US, Canada & Mexico Background and Definitions The overwhelming majority of delivery costs are demand-based for non- residential meters in ERCOT While energy supply costs have steadily decreased over the last 10 years, electric delivery costs have increased Key terms: • NCP demand – non-coincident peak demand in KW or KVA • 4CP demand – average of the meter’s peak demand in KW or KVA that is coincident with the grid peaks in June, July, August and September each year. • Power Factor – ratio of metered KW to metered KVA • Demand ratchet – aspect of the utility’s regulated tariff that allows them to charge the greater of the peak 15-minute demand that occurs during the billing period or 80% of the highest billed demand from the last 11 months • Load factor – ratio of the kWh consumed over a period divided by the peak demand in KW multiplied by the number of hours in the period ENERGY MADE HUMAN Confidential 3 Delivery Cost Drivers – Demand Ratchets Billed demand = greater of metered demand or 80% of max from prior 11 months Low load factor meters can experience significant increases in delivery charges per kWh Demand excursions can be the “gift that keeps on giving” Operational issues that cause abnormal spikes in demand should be avoided wherever possible Setting a separate meter for new loads can be costly when compared to feeding from an existing service due to demand ratchet implications ENERGY MADE HUMAN Confidential 4 Delivery Cost Drivers – 4CP KW/KVA 4CP KW/KVA is a component of the utility’s delivery charges that amounts to about $5 per 4CP KW/KVA per month (varies by rate code) Only applies to largest meters that include interval data recorders (IDRs) 4CP kW/KVA is calculated by the utility as the average of the 15-minute demands measured at the time of the monthly ERCOT grid peaks for the months of June, July, August and September ENERGY MADE HUMAN Confidential 5 Delivery Cost Drivers – Power Factor Power factor penalties are not broken out on client invoices, making them hard to identify Power factor is typically very easy to correct to eliminate the penalties Oncor, AEP and TNMP charge for poor power factor by simply increasing billing demand as follows: Billed Demand (kW)= Metered Demand (kW) * (0.95/pF) Centerpoint’s costs are based upon KVA, so as power falls below 100%, Centerpoint costs increase • KVA2 = KW2 + KVAR2 • Power Factor (%) = KW / KVA • As KVAR , Power Factor PF% = ENERGY MADE HUMAN Confidential 6 Common Self-Inflicted Wounds Load Analytics - Summary AMBER AMBER THE SUMMIT TRAIL TRAIL Testing backup chillers can set the demand ratchet for months to come ENERGY MADE HUMAN Confidential 8 Controls – Start Early and Ramp Up Easy HDD HDD HDD HDD HDD HDD HDD 27 26 21 12 13 10 27 AMBER AMBER THE SUMMIT TRAIL TRAIL Morning ramp ups, particularly in electrically heated buildings, must be done correctly ENERGY MADE HUMAN Confidential 9 Low Power Factor Increases Billed Demand Power factors below 95% can increase demand ratchets and billed demand by 10 to 15% ENERGY MADE HUMAN Confidential 10 Be Mindful of Base Load and Holiday Setbacks Memorial July 4 Day Labor Thanksgiving Day Week ENERGY MADE HUMAN Confidential 11 Q&A Anuniti Amireddy Josh D. Coleman, PE 4545 Fuller Dr, Suite 412 Irving, TX 75038 972-445-9584 [email protected] [email protected] ENERGY MADE HUMAN Confidential 12 We started 5 because we believe you deserve better. ENERGY MADE HUMAN Confidential 13.