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.
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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.
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A few event days a year at a very high price, paid for by a discount on every other day. Whether that suits a site comes down to how many kilowatts it can drop when an event is called.
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.
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.