Energy Rate Structures

AEE/ Certified Energy Manager CEM

G-1

Energy Bill Analysis

Understanding reasons for present energy costs -one of the earliest steps of an energy audit

Determine Rate Structure for each form of energy used at facility Energy uses: Industrial facilities Electric energy Gas or light oil Heavy oil Purchased steam other
AEE/ Certified Energy Manager CEM G-2

Commercial facilities Electric energy gas or light oil

Types of pricing
Flat rates Block rates Declining Inverted Demand rates Demand charge Demand ratchet (not in Egypt) Time of use rates On-peak Off-peak Partial-peak
AEE/ Certified Energy Manager CEM G-3

Other Types of pricing

Promotional rates
Interruptible rates (not in Egypt)

Seasonal rates
Real-time pricing (not in Egypt)

AEE/ Certified Energy Manager CEM

G-4

Utility Daily Peak Loads

Electric utilities experience widely varying loads each day. Loads very low:
Midnight to 6:00am-7:00am (homes & businesses start to use electricity ) 6:00-10:00 am 5:00-9:00 pm

Morning peak: Evening peak:

Loads drop:

After 9:00-10:00 pm

AEE/ Certified Energy Manager CEM

G-5

Why is load variation important?

Part of the time the utility does not need to use all of its generating facilities. Part of the time the utility might not have enough generation capacity. Electric energy cannot be stored economically, so the facilities for generating it must be available at the time the energy is needed
AEE/ Certified Energy Manager CEM G-6

Utility Seasonal peak loads

Many utility loads differ significantly from season to season due to heating and air conditioning.
Loads may be low in spring and fall -- no heating or AC required. Winter loads -- may be high from heating needs Summer loads -- may be high due to AC needs
AEE/ Certified Energy Manager CEM G-7