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What Your Utility Can Do For You?. AFS Piedmont Chapter Meeting, Sept. 25 th , 2013. What’s On Your Mind?. Future Energy Costs. Grid Reliability. Regulations. Worker Skills. Productivity Competitiveness Profitability. Conference Board, CEO Survey, June 2013.
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What Your Utility Can Do For You? AFS Piedmont Chapter Meeting, Sept. 25th, 2013
What’s On Your Mind? Future Energy Costs Grid Reliability Regulations Worker Skills Productivity Competitiveness Profitability
Outline • Components of Your Electric Bill • Take time to read the fine print on your rate schedule and compare with alternative rates available • Be aware of Riders that add other fees to your bill • Take advantage of Regulated Products & Services • Take advantage of Other Products & Services
Generation http://cdn.globalccsinstitute.com/sites/default/files/publications/104631/operating-flexibility-power-plants-ccs.pdf
Generation Demand Charges reflect the high cost of brining on peaking generators to meet the customers loads. This often occurs on extremely hot or cold days.
Economic Growth Drives Energy Demand Source: Energy Facts.org
US Forecast of Generation Capacity Source: Energy Facts.org
The Grid Demand Charges reflect the cost to build capacity to serve your maximum demand requirements. Energy Charges reflect the cost of fuel consumed and labor to deliver and bill monthly energy.
Rate Schedule Explained SCG = Small Customer Generator Rider. NM = Net Metering.
Rate Schedule Explained You need to ask how demand is measured (10 min, 15 min, or 30 min. and if it is real power (kW) or total power (kVA). The On-Peak hours in the four summer billing months are when you pay the most. Why? Because we are a summer peaking utility. If you are on a demand response rider, this is when a we are most likely to interrupt your load.
Rate Schedule Explained DETERMINATION OF BILLING DEMAND • The On-Peak Billing Demand each month shall be the largest of the following: 1. The maximum integrated thirty-minute demand during the applicable summer or winter on-peak period during the month for which the bill is rendered. 2. Fifty percent (50%) of the Contract Demand (or 50% of the On-Peak Contract Demand if such is specified in the contract) 3. 15 kilowatts (kW) B. Economy Demand ED = (Off-peak Demand) – (On-Peak Demand); provided Off-Pk kW > On-Pk kW. POWER FACTOR CORRECTION When the average monthly power factor of the Customer’s power requirements is less than 85 percent, the Company may correct the integrated demand in kilowatts for that month by multiplying by 85 percent and dividing by the average power factor in percent for that month.
Rate Schedule Explained Summer Months: 8 hours on-peak, 16 hours off-peak Winter Months: 7 hour on-peak, 17 hours off-peak
Riders In some locations depending upon your size you may Opt Out of the EE Rider but you need to weigh the benefits and costs. (This may be a one time decision that is irrevocable or it may be an annual election.)
Extra Facilities Charges 4) A monthly “Extra Facilities Charge” equal to 1.7% of the installed cost of the facilities, but not less than $25, shall be billed to the Customer in addition to the billing for energy, or for demand plus energy, in accordance with the applicable rate schedule. In lieu of the monthly charge above, at the Company’s option, the Customer may elect to be billed under an alternative payment option to the 1.7% per month. The alternative payment option will be calculated such that the net present value of the payments made by the Customer under the alternative payment option will be equal to the net present value of the 1.7% per month payment option. Under such option payment option the payment must be renewed after each thirty (30) year period 5) The “installed cost of extra facilities” shall be the original cost of material used, including spare equipment, if any, plus applicable labor, transportation, stores, tax, engineering and general expenses, all estimated if not known. The original cost of materials used is the current market price of the equipment at the time the equipment is installed, whether said equipment is new or out of inventory. 6) “Extra Facilities” shall include the installed cost of extra meters and associated equipment necessary to record demand and energy at the voltage delivered to the Customer. Upon mutual agreement between the Customer and the Company, demand and energy may be metered at primary voltage, without compensation for transformer loss, and without inclusion of any part of the metering cost as an extra facility. When extra facilities furnished include a voltage regulator, metering equipment shall be installed on the Company side of the regulator, or if this is not feasible, the meter shall be compensated so as to include registration of the regulator losses. 7) When the extra facilities requested by the Customer consist of those required to furnish service at either more than one delivery point on the premises or at more than one voltage, or both, the installed cost of the extra facilities to be used in the computation of the Extra Facilities Charge shall be the difference between the installed cost of the facilities made necessary by the Customer’s request, and the installed cost of the facilities which the Company would furnish without cost to the Customer under its standard form of contract. Multiple deliveries can be combined for billing. Spare transformers are possible.
Alternative to Extra Facilities • Take primary deliver and own your own substation and distribution network. • Contract with our Energy Services group or other similar Engineering / Construction / Maintenance companies for this service. • Depending on the size and complexity of the system this may be offered as turnkey work with an ongoing service agreement or financing may be available.
When to Use Our Regulated Offer • Campus with multiple building • Data Centers • Prefer to put the charge on the power bill • Usually lower cost for capital
Backup Power SystemsPremier Power & On-Site Generation (Regulated Offer) Flow of energy during normal conditions. Customer Facility M Utility Transformer ATS Del. Pt. Flow of energy during power outages. Backup System (ATS = Automatic Transfer Switch, M = Billing Meter)
When Our Non-Regulated Offer is Best • Only need to protect critical loads • May be provided as a service with ongoing maintenance provided • Prefer a turnkey installation • Scope of offer is broader and may include UPS equipment, switchgear, CRAC or HVAC equipment.
Backup Power SystemsMission Critical (Non-Regulated Offer) Customer Facility M Non-Critical Loads Sw. Gr. Utility Transformer Del. Pt. Flow of energy during normal conditions. Critical Load ATS (ATS = Automatic Transfer Switch, M= Billing Meter) Flow of energy during power outages. Backup System
Regulated Products & Services • Best Rates Analysis • EDI Billing & EFT Payment • Energy Today (quarterly newsletter) • MyDukeEnergy (customer portal) • Energy Assessments (Compressed Air, E3, etc.) • Smart Saver (EE) Incentives – prescriptive & custom • Power Share (DR) • Energy Profiler Online (interval data on the web)
Examples • Paying EE Incentives for Demand Control equipment at a foundry (IN) • Sponsoring Customer Process Heating seminar • Oct 21 & 22 in Indianapolis, Spring 2014 at ICAR.
Other Resources • Market Research (e-source) • Topical Webinars (AEC / Energy Today) • End Use Research (EPRI) • Demonstration Projects (EPRI) • Testing for End Use Equipment (AEC, TAC)
Energy Services Offers As your complete energy resource, Duke Energy can help advance your core business by improving your financial position, providing better operational performance and lowering your risk. Our goal is to help transform your energy system from a liability to a higher-performing asset. We offer three specific approaches, depending on where the issue originates in your business; i.e., • Strategic Approach ($$$) • Develop Master Plan, Install, Maintain Multi-Year EM Program • Operational Approach ($$) • Design, Install & Maintain UPS, Generators, Switchgear for Critical Loads • Product Approach ($) • Design, Install & Maintain Substation, Bus Duct and Main Switchgear Energy Services is not part of the regulated services offered by Duke Energy Carolinas, Duke Energy Progress or Duke Energy Florida, Inc., and is not in any way sanctioned by the North Carolina Utilities Commission, the Public Service Commission of South Carolina, or the Florida Public Service Commission. Purchasers of these products or services will receive no preference or special treatment from Duke Energy Carolinas, Duke Energy Progress or Duke Energy Florida, Inc., and are not required to buy products or services from Energy Services in order to receive safe, reliable electric service.
Examples • Backing up generator on Induction holding furnaces (NC) • Designing infrastructure for Induction melting furnaces (SC) • Paying EE Incentives for Demand Control equipment at a foundry (IN) • Sponsoring Customer Process Heating seminar • Oct 21 & 22 in Indianapolis, Spring 2014 at ICAR.
Summary • Understand what you are paying for. • Get to know your utility account manager. • Understand their capabilities. • Take advantages of the offers that meet your needs. • Give them feedback on what they can do better.
Thanks for Listening Wm. Roger Paules, Jr., CEM, PE Marketing Manager, Energy Services Duke Energy, Charlotte, NC [O] 704-382-7973 [E] Roger.Paules@duke-energy.com
Andrew Paules demo reel http://vimeo.com/64970459