11620RE: [hreg] RE: Renewable Energy
- May 9, 2013
Another quirk in REP pricing applies to churches and other non-residential customers with similar usage patterns. REPs may charge a church a price based on their highest one-time use during the entire billing period. So on an occasional day when air conditioning, lights food prep etc. are all running and cause a high peak demand point, the charge per kWh formula for the entire billing period is based on that usage rate.
REP logic is that they must install equipment rated and supply power for that load even though usage at that rate is not constant. This argument is bogus since, for instance, your home probably has 200Amp service but you will rarely if ever even approach 100 Amps of usage.
Kent is on the money when he points out that it’s a complex pricing structure and the REP holds all the cards. So their opposition to a DG customer is easy enough to penalize using an allowable fee just because you occasionally backfeed power. Coops are especially prone to this behavior since they are allowed to make their own bylaws with little oversight.
You have asked a complex question. Residential electricity pricing includes energy production cost (2.5 to 3 cents per kwh) distribution charge ( varies 3 to 5 cents per kwh) and rep mark up.
Commercial electricity contracts are industry specific and vary according to rep contracts. For example, large industry have variables such as heat factors, variance of band width, and as I mentioned earlier contract specific to allow energy production to be purchased back from the utility. Peak usage affects business pricing and not residential. Peak usage carries a thirteen month residual cost factor. For instance in a machine shop you turn on all your compressors and motors at the same time, you pay 15 to 20% more for your electricity for the next 13 months. Residential does not incur the same cost factor.
The reality is large industries will pay less for electricity. I know of one bus in houston that pays 5.5 cents per kwh with no additional cost.
By the way if you are a business owner, I can set you up with reps that will allow your home to be included. The question is do you want that? Low usage resi are also asked to pay more fees.
Hope this helps a little
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On May 7, 2013, at 10:17 PM, "Robert Johnston" <junk1@...> wrote:
Why are business plans different than residential? I’ve always wondered. I know small businesses that use similar amounts of energy as my home. Why can’t we access the same plans? Sounds like you may be someone who has the answer to this burning question! J
For business clients producing renewable energy, I have a special business contract tailored to your production and use. This is specific to Texas and will provided 1 to 1 cost/production. To my knowledge the only rep that comes close is green mountain energy for residential customers up to 499 kwh per month. Each kwh after will be paid the actual production cost which has been 2.5 to 3 cents per kwh.
Of interested in learning more about this custom business electric contract call me at 832 655 8686
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On May 7, 2013, at 8:00 AM, Russell Warren <russellrwarren@...> wrote:
There seems to be a plan from TXU that actually is less expensive for people who use less energy. So far it is the only one I have found. It seems to be one of the least expensive for usage in the 500 kWh range.
This is the energy facts label.
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