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Commercial Account Info
BTU offers several different rates to commercial customers that bill for either
kWh consumption (kWh) alone or both kWh and kilowatt demand (kW). Kilowatt-hours
are based on the hours of operation of any electrical device. The kWh is a means
by which the utility company measures consumption. Kilowatt demand is based on the
peak load of all electrical equipment running simultaneously (lighting, HVAC, machines).
The more electrical devices that are used at the same time, the higher the kW demand.
At BTU, our commercial customers are split into three categories – Small Commercial,
General Service, and Industrial.
Small Commercial accounts are those with 14.99 kW or less at any given fifteen (15)
minute interval during the billing period. Such accounts are billed for kWh consumption
only.
If, at any given time, a Small Commercial account’s demand is greater than 14.99
kW, the account will automatically be placed into the General Service category and
will be billed for both kW demand and kWh consumption. If after being classified
as a General Service account, the customer should have a demand of 14.99 kW or less,
that customer will remain in the General Service category for a minimum of 12 months
and shall be billed for kW demand at no less than 50% of the highest demand metered
during the 12-month period. If, after 12 months, the account maintains a demand
of 14.99 kW or less, the account will go back to the Small Commercial category.
Should the kW demand for a commercial account reach 1,000 kW or greater, that account
will be placed into the Industrial category and will also be billed for both kW
demand and kWh consumption.
Another rate available to qualifying General Service and Industrial customers is
BTU’s Energy-Only Rate. All General Service and Industrial accounts with a load
factor of 20% or greater are eligible for this rate. Load factor is the ratio of
the actual kWh consumption to the possible kWh consumption over a one-year period.
The possible kWh consumption is calculated by taking the average monthly kW demand
for the year and multiplying it by 8,760 hours in the year. For example, an account
with an average monthly demand of 100 kW and annual consumption of 438,000 kWh will
have a load factor of 50% (438,000 / (100 x 8,760)).
Qualifying accounts are placed in one of four Energy-Only Rate categories, depending
on the load factor of the account. The four ranges of load factors are 20-29.9%,
30-39.9%, 40-59.9%, and 60% or greater. These accounts are billed for kWh consumption
only.
If we can explain energy consumption and demand in more detail, to better help you
make the most of your utility dollars, please call 821-5715 and ask to speak with
an energy services advisor.
Commercial Account Application Form (Adobe Acrobat Reader is required).
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