Totalizing meter readings can be a very effective way to lower your demand and KWH costs. So, if you are a commercial or industrial customer and have multiple meters you may benefit from totalizing your meter readings. What is totalizing? How can you benefit from totalizing? What are the different methods of totalizing?
What is totalizing?
Totalizing, at its simplest form is nothing more than addition. You take the meter readings from all of the meters that you have and you add them together. This, in turn, gives you one meter reading. Furthermore, it is much easier many times for the customer as they only have to keep up with one bill. A more advanced definition of totalizing is that by combining your meter readings the peak demand can be effectively reduced.
To explain this we need an example. Look at the picture below. In it you see that there are three lines. In this example we have meter A, B and totalized meter C. Also note that the numbers on the bottom are hours of the day. Here we are assuming that the demand interval is hourly. Notice that meter A peaks at 3:00 PM. The peak demand for meter A is 24 KW. Notice that the peak demand for meter B is also 24 KW but it occurs at 9:00 AM. If you do not remember how demand works go over to my page on demand for a better understanding.
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Now that you have seen where meters A and B peak, let’s look at the totalizing meter C. Meter C peaks at 12:00 PM with a peak of 19.5 KW. This is 4.5 KW less than both meter A and meter B. This is because the totalizer effectively averages out all of its inputs. With KWH totalizing simply adds all of the KWH readings of the meters.
How can you benefit from totalizing?
Well, using the example above I am sure that you can see that your demand is reduced. So, let’s put that into dollars. Assume that your per KW demand charge is $15.00. For each meter that you have, A and B you will pay $360 each (24 KW x 15). So, for both meters you pay $720 per month just in demand charges. In addition, if you totalize with meter C your demand charges would only be $292.50 (19.5 KW x 15). A savings of $427.50! This is huge! However, remember that this is just an example, it is exaggerated.
You also save with your KWH charges. The reason for this is that most rates are tiered. Meaning that the price changes as you use more KWH. Also, in most cases the price goes down. If meter A uses 10,000 KWH in a month and meter B uses 15,000 KWH in month then in total they use 25,000 KWH. However, if the price buckets are as follows:
- $0.10 for the first 5,000 KWH
- $0.08 for the next 10,000 KWH
- $0.06 for all over 15,000 KWH
then if your meters are billed separately you will not be able to take advantage of the cheaper rate bucket. If you totalize however you will be able to take advantage and save on your KWH as well.
What are the different methods of totalizing?
There are two main methods of totalizing. Totalizing with software is the first. Using hardware, such as the meter is the second. To totalize with software the utility downloads readings from each of the meters that are to be totalized. The utility then uploads the readings to a totalizing program. This program looks at all of the readings adds them together and averages them out. Then it gives you the totalized readings.
Using hardware to totalize is a bit different. Wires are run from the meters that need to be totalized. Then to a central meter that totalizes the readings internally. The utility then reads this totalized meter to get the readings. Finally, the utility bills the customer with the totalized readings.
Final Thoughts
Although it sounds like totalizing is definitely worth it you need to be aware that your utility may charge a premium to totalize your readings. This can vary and also may not be worth it. Instead of paying facility charges for the meters that you already have, you may pay for those and the totalizer. In addition, totalizing meters are expensive.
It is best to talk with your utility to determine if you are a good candidate for totalizing.