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Old 08-26-2014, 04:00 PM   #1 (permalink)
 
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Contracting Power

I was speaking with one of my clients who owns a tortilla factory nearby. We were discussing the costs of doing business and got to comparing the costs of power as that is one of the largest costs for our industry. He told me that he easily uses 2-3 times as much power as a tanning salon for running all the machines in his factory, but now 'contracts' power with saves him about $3-$4K per month on his power bill. Have any salon owners done this? Do you know exactly what it entails?

I've asked him for more information, but wondered if any salon owners had success with it.
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Old 08-26-2014, 11:50 PM   #2 (permalink)
 
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Re: Contracting Power

Add a Kilowatts meter to breaker to measure the kilowatts used.
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Old 08-27-2014, 09:41 AM   #3 (permalink)
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Re: Contracting Power

He may have a much smaller demand charge and a much high usage charge compared to your salon. Salons do not consume that much power the issue is our demand charges are high.
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Old 08-27-2014, 12:00 PM   #4 (permalink)
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Re: Contracting Power

My off peak energy charge is .067630 cents per kwh. My on-peak demand charge is $12.25 per kwh. My electric bill doesn't differ much from the busy season to the slower summer months, maybe by a couple hundred dollars. No business in July, but my bill was over $1000. Doesn't make any sense.
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Old 08-27-2014, 02:27 PM   #5 (permalink)
 
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Re: Contracting Power

Quote:
Originally Posted by parrot head View Post
My off peak energy charge is .067630 cents per kwh. My on-peak demand charge is $12.25 per kwh. My electric bill doesn't differ much from the busy season to the slower summer months, maybe by a couple hundred dollars. No business in July, but my bill was over $1000. Doesn't make any sense.
A/C runtime?? We're the same way, bills triple in the summertime
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Old 08-27-2014, 07:30 PM   #6 (permalink)
 
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Re: Contracting Power

^^^Us too. Also we shut off breakers on closing nightly so we aren't charged for phantom power.
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