Illustrative Case: SoCal Extraction Lab Shifts Process Loads Off SCE Peak TOU Windows

The facility and starting situation

Assume a Type 7 cannabis manufacturing facility in Riverside County on a single SCE account in CAISO [cpuc-direct-access]. The lab occupies 18,000 square feet in an industrial park: hydrocarbon extraction rooms, ethanol recovery, vacuum oven halls, walk-in cold storage, and office HVAC. DCC reported 7,912 active annual licenses statewide in its supplemental budget report; manufacturing is a smaller share than cultivation [dcc-supplemental-report-fy24-25].

Process loads dominate the bill. Chillers reject heat from condensing loops. Vacuum ovens run 8 to 14 hour cycles. Solvent recovery stills reheat between batches. Cold storage compressors cycle all day. Inland Empire summers are hotter and drier than the North Coast; statewide normals are 929 cooling degree days, but local sensible cooling load runs long from May through October [noaa-cag-california].

The account sits on SCE's TOU-GS-2 general service schedule for demand-metered commercial customers. SCE's tariff book lists TOU-GS-1, TOU-GS-2, TOU-GS-3, and TOU-8 with separate facilities-related demand charges on maximum demand and time-related demand charges on on-peak demand [sce-tariff-books]. Supply is bundled through SCE's default procurement; the operator had not enrolled in the local CCA.

At startup the production manager scheduled vacuum oven pulls and ethanol recovery to finish before morning dispatch. That pushed chiller and still loads into SCE on-peak windows on weekday afternoons. Interval data showed maximum demand of 310 kW and on-peak demand of 285 kW in July.

Annual usage is assumed at 1.45 million kWh. At the EIA June 2026 California commercial average of 27.33 cents per kWh, that volume implies about $396,000 in energy at average prices alone [eia-epm-5-6-a]. Actual industrial-adjacent labs often land between commercial and industrial averages (20.74 cents industrial in the same EIA table) depending on schedule and demand stack [eia-epm-5-6-a].

What the baseline bills showed

The table uses modeled tariff inputs. Pull current $/kW figures from SCE schedule sheets before quoting a client [sce-tariff-books].

Line item	Assumption or rate	Monthly (July)	Notes
Chillers	95 kW when batches run	68,400 kWh	Assumed load
Vacuum ovens	60 kW on batch days	21,600 kWh	Assumed load
Solvent recovery	45 kW during still heat-up	16,200 kWh	Assumed load
Cold storage and HVAC	55 kW average	39,600 kWh	Assumed load
Maximum demand	310 kW	310 kW	Facilities-related charge
On-peak demand	285 kW	285 kW	Time-related charge
Facilities-related demand (modeled)	Assume $28 per kW	~$8,680	[sce-tariff-books]
Time-related on-peak demand (modeled)	Assume $18 per kW	~$5,130	[sce-tariff-books]
Energy (modeled on-peak/off-peak split)	Assume blended 17.5 cents per kWh	~$25,400	Modeled input
Approximate total		~$39,200	Excludes taxes and riders

Annualized all-in modeled spend: about $435,000. Demand lines were roughly 38 percent of the total, higher than the supply line alone because both maximum and on-peak kW were billing [sce-tariff-books].

Why on-peak overlap hurt

SCE TOU-GS schedules bill two demand dimensions: facilities-related on the highest interval in the month, and time-related on the highest interval during on-peak hours [sce-tariff-books]. See peak demand vs. peak usage.

When oven cycles, chiller start, and still heat-up aligned between 2 p.m. and 6 p.m., on-peak demand tracked within 25 kW of maximum demand. Shaving maximum kW alone would not help much if the same stack still occurred on peak.

The lab also paid higher on-peak energy rates than off-peak rates on the TOU schedule [sce-tariff-books]. Batch timing affected both demand and energy.

What changed

The operator mapped process steps to interval data rather than signing a supply contract first.

Batch window shift. Vacuum oven cycles start at 9 p.m. and finish before morning QA. Ethanol recovery heat-up runs overnight. Chillers still run when needed, but heavy condenser load avoids 2 p.m. to 6 p.m. on weekdays.

Staggered chiller staging. Two 50-ton units previously started together. A 90-second start delay plus setpoint ramp cut the simultaneous step by 35 kW during on-peak hours.

Cold storage float. Anti-sweat heaters and condenser setpoints were widened by 1.5 degrees F during on-peak hours only, with product temperature logging. Modeled on-peak demand reduction: 12 kW.

Supply review deferred. SCE had the most Direct Access headroom in the 2023 lottery (1,206 GWh open) [cpuc-direct-access], but supply switching does not change time-related delivery demand on TOU-GS-2 [sce-tariff-books]. The operator kept bundled service and revisited CCA pricing after demand work.

SCE's Agriculture Energy Efficiency program targets horticultural LEDs, not extraction equipment [sce-agee]. No prescriptive rebate applied to chillers in this example; custom efficiency would require a separate study.

The math after

Assume July maximum demand fell from 310 kW to 295 kW and on-peak demand from 285 kW to 220 kW. Total kWh dropped about 2 percent from slightly shorter chiller runtime, an assumed 29,000 kWh a year.

Line item	Before (July)	After (July)	Change
Maximum demand	310 kW	295 kW	−15 kW
On-peak demand	285 kW	220 kW	−65 kW
Facilities-related demand charge	~$8,680	~$8,260	~−$420
Time-related on-peak demand	~$5,130	~$3,960	~−$1,170
Energy (modeled)	~$25,400	~$23,800	~−$1,600 (off-peak shift)
Modeled monthly total	~$39,200	~$36,000	~−$3,200

Annualized modeled savings: about $32,000, with roughly 55 percent from the time-related demand charge, 30 percent from off-peak energy shift, and 15 percent from lower maximum demand.

At 1.42 million kWh after the small efficiency gain, modeled all-in cost of 30.1 cents per kWh still exceeds the EIA commercial average because delivery demand remains on the bill [eia-epm-5-6-a] [sce-tariff-books].

What did not work

Running all heavy loads on weekend off-peak only. Batch throughput could not fit in 48 hours without adding shifts and overtime that erased electric savings.

Demand response enrollment. SCE lists business demand response programs, but dropping 200 kW during a notification window mid-batch risked product loss. The lab declined after one test curtailment on cold storage.

Upsizing to a single oversized chiller. One 100-ton unit had a harder start than two staged 50-ton units. Peak kW rose in a vendor quote the operator rejected.

Switching supply before fixing the interval shape. A CCA quote saved 1.1 cents per kWh on energy, about $16,000 a year on 1.45 million kWh. TOU demand savings in this model were roughly double that. See extraction facility energy loads.

SCE rate escalation context

SCE delivery tariffs update through General Rate Case proceedings. Treat per-kW figures in this example as illustrative of bill shape, not permanent quotes. Re-run interval analysis after each rate case effective date if on-peak demand remains a double line item [sce-tariff-books].

CPUC Direct Access cap context for future supply moves

When this operator deferred supply shopping, SCE territory still had Direct Access headroom in the published lottery results [cpuc-direct-access]. TOU-GS delivery demand would remain on bundled service even after DA transfer. Revisit supply only after interval shape stabilizes; changing generation suppliers does not rewrite time-related demand charges [sce-tariff-books].

Interval data export cadence

SCE business customers with interval meters should export 15-minute data monthly and tag batch SOP changes to the same spreadsheet. On-peak demand in this model responded to process scheduling, not supply rate. Without interval tags, managers attribute bill moves to weather instead of oven start times [sce-tariff-books].

Re-run after major batch recipe change

When the lab adds a new SKU with longer oven cycles, re-export interval data. TOU on-peak overlap is a function of SOP, not contract type. Supply quotes stay secondary until on-peak demand trend stabilizes [sce-tariff-books].

SCE rate book revision cadence

SCE publishes tariff books on a schedule tied to General Rate Case decisions. When comparing this illustrative model to your bill, pull the current TOU-GS demand charge pages from the active book rather than assuming static cents per kW [sce-tariff-books].

Post-change interval audit schedule

Re-export SCE interval data quarterly after SOP changes. TOU on-peak demand can creep upward when new SKUs add oven cycles without updating the batch schedule map [sce-tariff-books].

Lessons that transfer to other California extraction labs

Read both maximum and on-peak demand on SCE TOU-GS schedules before you shop supply [sce-tariff-books]. Map batch SOPs to interval data; overnight scheduling is often cheaper than a new contract. Stagger motor starts on chillers and stills. Confirm whether your account has crossed into TOU-GS-3 or TOU-8 thresholds as load grows [sce-tariff-books]. Direct Access and CCA change generation lines, not delivery TOU structure [cpuc-direct-access]. Review the SCE utility page and California extraction energy overview. For demand charge basics see utility rate classes explained and the demand charge FAQ cluster.