Demand Charge Limiters

More Efficient Energy Usage for a Consistent Utility Bill

Quad Plus will help you determine how your power company calculates the demand charge on your utility bill and implement software to help cut your power expenses by thousands of dollars every month. As you know, powering your auto shredder is expensive. Demand charges are fees that are calculated based on the highest 5-, 15-, or 30-minute period of demand during your billing cycle and can account for up to 70 percent of your power bill!

Why Quad Plus?

In auto shredding applications, the main mill motor is the source of variability and accounts for the majority of the utility demand for the entire plant. The Quad Plus Demand Charge Limiter leverages the advanced technology in our main mill drive system to control and manipulate the demand charge. No additional external hardware is required to implement the Quad Plus Demand Charge Limiter which minimizes installation costs and commissioning times. Since the source data for the Demand Charge Limiter is native in the Quad Plus drive system, we can provide faster control and better feedback to operators and management of real-time demand.

lower peak electricity costs with demand charge limiter software

Demand Charges Explained

In your electricity bill, the actual energy usage is calculated by multiplying the kilowatt hours (kWh) used by the energy rate. The only way to reduce your actual energy usage is by consuming less energy.

kilowatt hours (kWh) used x energy rate = actual energy usage

Generally, the most significant part of your bill is the demand charge. Your utility company uses a demand meter to measure how much power you are using during a demand interval--typically 5-, 15-, or 30-minute segments of time throughout the billing month. The highest number of kilowatts used in any of these intervals is your “peak demand,” and this number is multiplied by the demand rate to get your demand charge.

peak demand x demand rate = demand charge

Consuming reasonably consistent amounts of electricity throughout the month will give you consistent bills. However, spikes in demand could lead to extreme demand charges that aren’t reflective of your overall usage.

How Demand Charges Fluctuate

Utility companies have demand charges because of their responsibility to deliver the amount of electricity you need, when you need it. If your peak usage is 100 kilowatts and you tend to consume a relatively steady 100 kilowatts per demand period throughout the day and the billing month, the utility knows what to expect from you and can reliably make that energy available for you to use. In other words, regardless of how large that peak number is, the demand on the utility is steady and therefore less of a burden to manage.

On the other hand, spikes in usage allow the utility company to charge you at a greater demand because generation capacity is expensive. But demand charge limiters help to offset these costs. If the demand remains the same, the utility company doesn’t have to generate the additional capacity to supply electricity to your system. If you have spikes in demand, the percentage of your bill for demand will be significantly higher to meet your unpredictable demand.

electric company demand charges for industrial applications

Understanding Your Power Consumption

Our first step is to evaluate utility bills, rate structures, and corresponding monthly productivity reports. Next, we create a detailed profile of your facility’s energy efficiency over typical operating cycles.

The data from this study is used to create a basic economic analysis and determine the payback period for a recommended demand charge limiter’s software settings. Once we have a clear understanding of your current energy patterns, we can get to work on cutting energy expenses.

How We Reduce Industrial Electricity Demand Charges

Our Demand Charge Limiters allow you to determine the kW demand you want to see on your power bill based on your production requirements. The manager enters the target kW demand on the setup screen and activates the program. The system begins calculating predicted kW usage and actual kW consumed. If your actual consumption exceeds the forecast during production, small corrections will bring it below the forecasted amount.

Let's Get Connected

hammermill shredder control system integration services

Quad Plus has been helping companies keep energy bills in check for 30 years. Our complete solutions will have you in control of your usage and demand without sacrificing production needs. Our team has the knowledge and experience to make your operations more efficient, and we’ll provide ongoing support even after your project is complete.

Ready to start the conversation?

Contact Quad Plus Now!