Article appeared first in PennEnergy
By Rob Day, Black Coral Capital, and Kevin Klustner, Powerit Solutions
For a long time, industrial companies have represented a highly variable and difficult to manage set of customers for utilities. Industrial plants and facilities can have big shifts in loads, and, as a result, utilities always must keep capacity readily available. That’s why this business relationship and pricing model traditionally has involved relatively low costs on a per-kilowatt-hour basis, plus additional "capacity charges."
The connections between the industrial sector and the utility industry will become increasingly complex and even more variable.