ABSTRACT
Facilities where lighting is a significant part of the total load may find that upgrading it with high power factor (PF) ballasts and lamps raises PF sufficiently to zero out a reactive power charge. When hourly wholesale prices start to spike, they may ask customers to cut load and/or run their emergency or backup generators. Many utilities offer demand response or load management options, but rules and benefits vary widely, and from year to year. To finance the cost, a utility may offer an on-bill payment option configured so that the customer always sees a savings. A more aggressive approach may be taken by applying section 201 in the Federal Power Act, wherein a narrow option may exist that allows a customer to connect its own substation to the transmission line on its property that bypasses the utility to directly access wholesale grid pricing. It offers a soup-to-nuts discussion for persuading a utility to allow a customer to supply on-site power.
