Tuesday, November 5, 2013

Pricing out tiered utility rate structures

I've gotten a few questions about how to determine annual energy costs when utilities have a tiered rate structure.  Here is a walk through for one method of modeling the annual electric costs. 

This model assumes that the house is NOT heated with electricity and that there is a summer cooling load.  So if the house is located in the Indianapolis, Evansville, or Cincinnati weather regions, this modeling would be appropriate.  If your homes are located in the Chicago, South Bend, or Fort Wayne regions, a smaller cooling load might be more appropriate.  If there is a need for this manner of modeling from the northern areas, I'll work on that later.

This table shows an assumed monthly allocation of how much electricity is consumed each month.  The percent allocation show below is what was used in the most recent DOE priority list run.  That analysis was based on the average electric consumption during the 2009-2010 evaluation period: 11,323 kWh.

Monthly profile % of annual consumption Monthly Consumption
January 0.068 769.964
February 0.051 577.473
March 0.05 566.15
April 0.051 577.473
May 0.06 679.38
June 0.115 1302.145
July 0.17 1924.91
August 0.142 1607.866
September 0.103 1166.269
October 0.063 713.349
November 0.063 713.349
December 0.064 724.672
Total 1.000 11323


This breakdown can then be used to determine the monthly bills of the hypothetical utility customer.  The sum of the 12 monthly bills divided by the number of kWh used during those twelve months (11,323) will tell what the average cost per kWh is for the purpose of NEAT & MHEA.

Update:
The following is a similar benchmark to use for determining average annual fuel costs for the small handful of natural gas providers that are not Vectren, NIPSCO, or CEG.  These are the monthly consumption amounts that can be used to determine the annual fuel costs (along with the utility rate tariffs):


Monthly profile therms
January 169.671
February 140.408
March 113.366
April 65.9213
May 32.7063
June 13.425
July 10.2859
August 10.8714
September 21.7202
October 58.3251
November 106.783
December 153.517
Total 897

 

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