Understanding 4CP charges is key to cutting energy costs

RP news wires, Noria Corporation
Tags: energy management

Shermco Industries, a leading provider of rotating apparatus and electrical power system testing, commissioning, repair, maintenance and training, is helping companies manage the increasing cost of energy by helping them understand 4CP (Four Coincident Peak) charges and forecast events. 


“Companies that understand how 4CP charges are calculated and anticipate these events will save a significant amount of money on their power bills just by proactively monitoring and controlling demand activities,” said Ron Widup, executive vice president of Shermco.


The 4CP electric bill charge is one of 11 charges on the electric bill. It is calculated based upon system demands coinciding with the ERCOT system peak demand during the months of June, July, August and September. For the last four years, ERCOT measured peak demand times on weekdays between 3:45 p.m. and 5 p.m. 


The peak 4CP demand that is metered during the summer months is averaged and used as your 4CP kilowatt rate for the entire next calendar year, starting with the January electricity bill. Annual costs range from approximately $16.13 to $21.19 per 4CP kilowatt, depending on how voltage is delivered (secondary, primary or transmission) and the electrical utility in use.


Reducing the load during the 4CP measurement time of the day and on the right days, you will save money for the entire next year when the new 4CP readings go in effect, says Widup.


“Basically, you want your demand to be as low as possible when the grid hits its peak,” he said. “If you can change scheduled maintenance periods, coordinate shift changes, turn off non-critical loads, reduce chiller or air-handler loads, or basically reduce your power consumption by any amount in anticipation of the four 15-minute intervals when ERCOT is likely to hit its system peak, the benefits will be seen for an entire year.”


Shermco Industries is a provider of safe, reliable testing, repair, professional training, maintenance and analysis of rotating apparatus and electrical power distribution systems and related equipment for the light, medium, and heavy industrial base nationwide. Founded in 1974 in Dallas, the company is comprised of an Apparatus Services Division and an Engineering Services Division. For more information, visit www.shermco.com.

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