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How your Texas business uses electricity this summer will impact your bill for the next year. Sounds dramatic. But it’s true.
If you have a demand meter, your peak demand charges for the next calendar year will be established during the grid’s highest demand days in a 4 month period.
In Texas, this is referred to as 4CP or 4 coincident peaks.
Shopping for business electricity in Texas can be a challenge. But you can avoid common mistakes businesses make in energy procurement by knowing what to look for.
Most mistakes are simple oversights. Don’t treat electricity procurement like it’s just another purchasing decision. These can be complex contracts and it’s important to avoid these errors.
Are there ways to save on your business electricity bill? Doing so starts with understanding what makes up your commecial electricity bill. Across all types of energy markets, commercial electricity bills typically have three sections – delivery charges, supply charges and demand charges.
Learning more about each can help you cut your business’ electricity bill. and this helpful guide on reading your business’s electricity bill is a great foundation
Read More about Reading Your Commercial Electricity Bill & TDSP Charges for Your Business
You shopped for the lowest rate per kWh for your business. So what’s this other charge on your bill?
Business customers often pay a commercial electricity demand charge in addition to the cost per kWh. A demand charge is a fee based on the highest amount of power a customer draws during any 15 minute interval. Demand charges are established annually, and can add 30% or more to your electricity bill.
Read on to find out what is a demand charge, how demand charges are set, typical load factor by type of business, how your load factor impacts your demand, and most importantly, how to reduce your demand charges.
