J.Pollock Blog

Should Have Asked

Utilities are under no obligation to select the most cost-effective rate to serve a customer. In general, taking service at higher delivery voltages is more cost-effective, particularly for larger loads. A client operating a newly commissioned facility noticed that his utility bills were much higher than anticipated and asked J.Pollock to conduct an audit. The audit revealed that the client could have saved over $300,000 per year if service had been provided at a higher voltage. However, while negotiating with the utility to bring electricity service to the new facility, the client was not aware of the benefits of higher voltage service. Had J.Pollock been asked to assist in the negotiations, we would have advised the client to invest in the necessary equipment to take higher voltage service because the benefits of the lower rate would more than outweigh the costs. Since completing the audit, the client engaged J.Pollock to determine the optimal rates for similar facilities to be located in other states.