Question: In recent years, utilities have increased demand charges while keeping consumption charges steadyor even lowering them. Why might this shift be happening? 3.2 Why is
In recent years, utilities have increased demand charges while keeping consumption charges steadyor even lowering them. Why might this shift be happening? 3.2 Why is controlling demand more profitable during peak months compared to off-peak months? How could the presence of a ratchet clause influence this? 3.3 What strategies can a manufacturing company adopt to prepare for natural gas curtailments and reduce their negative effects? 3.4 Why do some managers neglect to properly analyze or understand their energy rate schedules? 3.5 Should companies regularly review their energy rate schedules to determine if changes are necessary? Explain your reasoning. 3.6 Why might a utility pay lower buy-back rates for electricity from cogeneration, wind, or solar compared to the rates it charges its own customers? 3.7 What are the pros and cons of time-of-day electric rates for residential customers? Referring to Figure 3-6, what steps could a household take to reduce electricity use during peak hours under such a rate structure?
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