Ratcheting Rate Cost Reduction

Electrical ratcheting rates are based on the peak, or highest electrical demand experienced in a specific period of time. Some utilities keep track of monthly and annual peak demands, each with separate rates. In commercial office buildings, approximately 40% of the electrical bill is associated with demand costs. Once a new peak demand record is set, building owners often find it extremely challenging to lower demand costs.

3B Systems has developed control programming to reverse ratcheting costs associated with the operation of large HVAC equipment. The control strategies include peak demand management, involving scheduling HVAC equipment operation to avoid simultaneous high-demand periods and staggering start-up times. Load shedding is implemented automatically by the building's energy management system, thus eliminating operator error which accounts for 70 to 80 percent of all record high demand events. The automatic control measures reduce non-essential electrical loads during peak demand periods, lowering overall demand. Additionally, participation in demand response programs offered by utility providers incentivize reduced electricity usage during high-demand periods.

Our predictive control algorithms anticipate peak demand periods and optimize HVAC operation accordingly. Real-time monitoring, Smart Metering and control systems provide visibility into energy usage, allowing for automatic adjustment of HVAC operation in response to demand changes. By implementing these strategies, our custom programming effectively lowers electrical ratcheting costs, ultimately reducing overall energy expenses and improving financial performance for building owners.