Manufacturing and industrial facilities carry some of the highest electricity loads of any commercial customer type. Heavy motor loads on production lines, large air compressors, process heating and cooling equipment, and lighting across vast floor plates create enormous energy consumption. On top of consumption charges, industrial facilities face significant demand charges — billed based on the highest 15-minute peak of the month — which can represent 30 to 40 percent of the total electricity bill. Most manufacturers have never fully optimized their rate structure to account for both components simultaneously.

The answer depends on your load shape and risk tolerance. Manufacturers with predictable, high-volume consumption running on consistent shift schedules can benefit significantly from indexed pricing when wholesale market conditions are favorable — capturing prices below what a fixed rate would offer. Fixed rates provide certainty and protect against market spikes, which is preferable for facilities where energy cost volatility would disrupt financial planning. Lee Multi-Services models both scenarios against your actual consumption data and presents the expected total cost under each structure before you decide.

Demand charges are billed based on the highest 15-minute average kilowatt draw recorded during the billing period. For industrial facilities with large motors, compressors, or process equipment that starts under heavy load, a single peak event can set the demand charge for the entire month. Lee Multi-Services analyzes your interval meter data to identify when and why demand peaks occur, and we factor demand charge structure into every rate comparison — because a lower per-kWh rate that comes with a higher demand charge component can actually cost more in total.

Yes — manufacturing operations with flexibility in shift scheduling can potentially benefit from time-of-use or off-peak rate structures that offer lower energy costs during overnight or weekend hours when Texas grid demand is lowest. Lee Multi-Services evaluates whether your production schedule has enough flexibility to take advantage of off-peak pricing, and if so, we identify the specific rate structures offered by Texas REPs that reward load shifting with lower costs.