Electricity Delivery in ERCOT Avoiding Self Inflicted Wounds Who is 5?
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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