Ohio Factory & Manufacturing Energy Guide
Factories face unique challenges with demand charges from equipment startups. Strategic energy procurement can help manage these costs in Ohio's deregulated market.
Up to 40%*
60-70%
35-45%
*Actual savings vary based on current rates, usage patterns, and market conditions.
Common Energy Challenges
- Equipment startups create demand spikes costing $8,000-$20,000/month
- Production schedules create unpredictable usage patterns
- Multiple meters complicate rate negotiations
- Natural gas volatility affects electricity prices
Proven Solutions
- Stagger equipment startups to reduce peak demand 20-30%
- Battery storage for demand shaving (3-5 year payback)
- Blended rate contracts hedge against market swings
- PJM demand response programs pay $50-100/kW annually
What Ohio Manufacturers Should Know About Demand Charges
For manufacturing facilities, demand charges often represent 35-45% of the total electricity bill. Understanding how these charges work is crucial for managing energy costs effectively.
How Demand Charges Work
Your utility measures your highest 15-minute average power draw each month. This peak demand (in kW) is multiplied by a per-kW rate to calculate demand charges.
Demand Management Tips
Staggering equipment startups, optimizing production schedules, and participating in PJM demand response programs can help manage peak demand costs.
Ohio's PJM Market: Ohio operates within the PJM Interconnection, the largest competitive wholesale electricity market in North America. This market structure enables competitive supplier options for large industrial users.
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