Water Plant Energy Management
Water Plant Energy Management
RATE SCHEDULES
Because it is costly for electric utilities to provide generating capacity for use during periods of
peak electrical demand, they often structure rates to encourage customers to minimize demand
during peak periods. That's why plants should investigate the variety of rate schedules offered by
electric utilities. They may achieve substantial savings simply by selecting a rate schedule that
better fits their pattern of electricity use.
• Time-of-Use Rates
In most areas of the country time-of-use rates, which favor off-peak electrical use, are available.
Under time-of-use rates, energy and demand charges vary during different block periods of the
day. For example, energy charges in the summer may be only five cents per kilowatt-hour with
no demand charge between 9:30 p.m. and 8:30 a.m., but increase to nine cents per kilowatt-hour
with a demand charge of $10 per kilowatt between noon and 6:00 p.m. The monthly demand
charge is often based upon the highest 15-minute average demand for the month.
• Interruptible Rates
Interruptible rates offer users discounts in exchange for a user commitment to reduce demand on
request. On the rare occasions when a plant receives such a request, it can run standby power
generators.
DEMONSTRATED SUCCESS
Encina Wastewater Authority reduced its demand charges $50,000 per year by manually shutting
down select high-demand equipment on-peak. Moulton Niguel Water District eliminated on-
peak pumping at several large pumping stations by utilizing gravity flow from storage reservoirs,
reducing demand charges by $320,000 per year. The City of Woodland Water Department
reduced its energy costs $125,000 per year simply by changing to a time-of-use rate schedule and
modifying operating practices to lower its peak demand.
REFERENCES
Electric Power Research Institute, Reduce Costs by Understanding Your Electric Bill, BR-
103303, 1993.
Electric Power Research Institute, Energy Efficiency in Wastewater Treatment,
TechCommentary Vol.1, No. 3, May 1993.