Gain Insight Into How Utilities Bill Commercial And Industrial Users

In most markets around the United States public utilities express their billing units as Kilowatts (KW) for energy demand charges and Kilowatt Hours (KWH) for energy consumed for commercial and industrial users. In addition, in many instances public utilities will bill the commercial and industrial users penalties for low Power Factor (PF) when they fall below prescribed levels and/or for Reactive Power (KVAR) when “non-working” power has to be made up by the utility due to inefficiency in the customer’s load. The billing process and the weighting of the various billing attributes of KW, KWH, PF and KVAR are charged in different ways by every public utility in the United States.

Savings on a utility bill for the customer from energy conservation or installation of power quality equipment is dependent on many factors including the customer location (public utility), attached load or loads (electrical system), age and use of the facility (installed equipment), other installed energy improvement devices or measures, billing practices of the public utility, KVAR or PF penalties or other agreements in place between the public utility and the customer.

MPTS will save money on the utility bill where the end user is charged for all the energy used implicitly or explicitly (as apparent power or KVA), or is charged reactive power or PF penalties.  MPTS does not save true power (KW the equipment needs to operate) where they do not charge the end user for wasted energy (KW = KVA x PF).

We would be pleased to answer any questions that you may have about public utility billing practices or discuss how TransPower products can have an impact on your total energy consumption.