How to Choose the Right Electricity Rate Schedule
Being on the wrong tariff is among the most common avoidable overcharges in commercial billing. Modeling your own interval data against the alternatives settles it in a day.
Utilities publish more than one tariff for the same service territory, and being on the wrong one is among the most common avoidable overcharges in commercial billing. A general service schedule, a time-of-use schedule and a real-time pricing option will each price the same load differently, and the switching rules — notice periods, minimum stay, eligibility thresholds by demand level — are set out in the tariff book rather than on the bill. This section explains how to read a rate schedule, how to model your own interval data against alternative tariffs before committing, what standby and supplemental service cost a site with on-site generation, and how riders and surcharges attach on top of whichever schedule you land on.
Being on the wrong tariff is among the most common avoidable overcharges in commercial billing. Modeling your own interval data against the alternatives settles it in a day.
Everything underneath the pillar, in this subject area.
Two schedules can collect the same revenue from a utility's customers and treat your particular load very differently. One number tells you which side you are on.
The tariff is the contract, it is public, and almost nobody opens it. A method for extracting the six things that actually determine what you pay.
Hourly wholesale-linked prices reward a site that can move load and punish one that cannot. The annual average is not the number that decides it.
A site that makes some of its own power still needs the grid to be there when the generator is not. Standby tariffs price that readiness, and they decide many project cases.
The modeling says switch. The tariff says how, when, and for how long you are committed. Reading the second document after the first is how a good analysis becomes a bad year.
The same kilowatt-hour costs different amounts depending on when it arrives. Whether that helps or hurts depends entirely on how much timing latitude your operation really has.