ty
Senior Member
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I would have sold him one of those power saver gizmo's that we all know to be baloney.....:grin: Sounds like an easy sale.....
Man, Mike, you beat me to it!
The Power Saver 1200!
LOL!!
I would have sold him one of those power saver gizmo's that we all know to be baloney.....:grin: Sounds like an easy sale.....
Don't forget the water heater or a hot water leak.
Is this a residential or commercial customer ? If it's commercial they could be getting charged for peak demand. I'll let some of the POCO workers jump in here and explain how that rip-off works.:roll:
Mivey, that's a great analogy, well stated and well thought out. Now, if we could stay with that analogy for a moment, if I needed a fast delivery why is my only choice to buy a big truck ? Why couldn't I rent a bigger truck for the short time that I needed it, pay a premium up front and not have to pay finance charges for a month, a year or forever ? I'm not opposed to POCO's making money for their services. I'm opposed to them bagging a customer forever just because they needed a few more KW's than usual one day last June. I'm also opposed to their not making a peak demand rate schedules public. If I charge a customer for work I've done I have to justify my charges.It is only perceived as a rip-off by those who don't understand demands and/or have been exposed to a poor rate design.
The demand is a measure of how fast you take delivery of energy. For example, to take fast delivery of a product you would have to buy a bigger truck.
To later complain that it is unfair to pay the higher finance charge for the bigger truck that you don't use to its full potential all the time is unrealistic.
If you don't want to buy the big truck, then you will need a more efficient delivery schedule.
Sure you could, all that would be needed is for the POCO to come and take away the large service transformer and put in a smaller one each time your demand decreased. When your demand goes back up, they would have to bring back the bigger transformer, assuming someone else isn't using it at that time.Why couldn't I rent a bigger truck for the short time that I needed it, pay a premium up front and not have to pay finance charges for a month, a year or forever ?
You can certainly rent a generator for the times you want to have a high demand. The POCO does not stop you from doing that but usually the economics will.Mivey, that's a great analogy, well stated and well thought out. Now, if we could stay with that analogy for a moment, if I needed a fast delivery why is my only choice to buy a big truck ?
Almost all POCOs only charge the finance charges for a year as the demand charge is based on the most current 12 months (there are some who do more or less). It is a fact that one hour of demand can cost the POCO wholesale demand allocations for an entire year (or more).Why couldn't I rent a bigger truck for the short time that I needed it, pay a premium up front and not have to pay finance charges for a month, a year or forever ?
You have a right to see the rate that you are being charged. You may not have a right to see every rate the POCO is using. They will usually provide you with any rate schedule that would apply to you. You only have to ask. A lot of times they are published online or available at the office of the regulating entity.I'm not opposed to POCO's making money for their services. I'm opposed to them bagging a customer forever just because they needed a few more KW's than usual one day last June. I'm also opposed to their not making a peak demand rate schedules public. If I charge a customer for work I've done I have to justify my charges.
You think correctly.I thought the reason for peak demand rates was because the poco has to have the capacity to meet that demand at any time for the next time the customer loads the supply? generators, transformers, wire sizes, etc.
Thanks for the compliments.Mivey,
I see your point and you are obviously educated on this topic and a well spoken individual. I believe that larger commercial customers should rightfully be charged for peak demand seeing as how they may or may not require a larger load continuously or at random times. I just think the POCO should bill for that service on a monthly basis and not whack you for a year at peak rates whether you use that amount ao electricity or not.
He said most of the bill was in the forth tier which is .45 cents a kwh not sure.