Off-Peak Heating Economics: Commercial and Industrial (C&I)
Most power companies bill commercial and industrial (C&I) accounts for energy consumed (kWh) plus a demand charge (per kW) based on maximum rate of electric usage during a given period of time (generally over a month). With ETS heating, C&I customers realize significant power cost savings by shifting their entire electric heating consumption to demand-free hours and/or the times during a day when energy consumption in the facility is low. ETS heating achieves these savings in any one of or a combination of the following ways
Reduction of Peak Demand (kW): Since ETS systems store heat during off-peak, demand free hours, existing electric heat consumption can be shifted away from peaking hours. This reduces the amount of demand cost the C&I customer has to pay.
Reduction of Energy Cost (kWh): Some power companies offer Time-of-Use or other variable rate options where they charge a lower price for energy consumed during predetermined, off-peak hours of the day. ETS systems use this low cost energy for heating which can save the C&I customer significant money on all energy used for heating purposes.
Use of Demand Free Energy: Standard rates for C&I accounts are usually comprised of a low energy cost plus a demand charge. Since ETS systems store heat during off-peak, demand free hours, the demand charge is avoided. The energy charge alone generally offers much lower heating costs than alternative fossil fuel heating options such as natural gas, propane or fuel oil.
Other Opportunities: Some power companies offer additional rate options related to things such as facility load factor, night energy usage rates, etc. ETS systems help improve C&I load factors and provide the opportunity to reduce power costs.
Contact your power supplier to find out more about the rate options available for you to take advantage of.
Energy Cost Comparison Chart (click on the graph for a larger version):
