Hydro Billing Analysis
The primary goal of this complimentary hydro billing analysis is to help indicate the efficiency of your electrical system through the examination of the demand readings recorded by the utility meter over a historical period of time (usually 12 months). In almost all cases demand billing charges are determined by power factor (PF=kW/kVA), which determines which readings rates are applied to.
Though each utility has their own rates structures the majority tend to follow what's commonly called the 90% billing method. In this type of billing, demand rates are applied to either 100% of the kW reading or 90% of the kVA reading, whichever is greatest.
The point at which the Power Factor falls below 90% (0.9) is also the point where kVA readings become larger than the kW and thus rates are applied to that reading and generating an avoidable cost (or penalty) which can be eliminated by increasing the power factor above the 90% threshold.
The purposes of our hydro billing analysis:
- To show historical demand usage as seen by the utility meter over a period of time (preferably 12 months).
- To determine the electrical systems power factor as seen by the utility meter.
- To calculate avoidable costs due to poor power factor.
- To provide a correction size (when required) to bring the facility electrical systems power factor above the threshold where extra costs can be avoided.
- To forecast future savings potential that can be realized by correcting the power factor based on the most current hydro billing structure and rates.