Technical Chemical Company (TCC), operating since 1961, is a leading producer
of premier products for the automotive, hardware, marine, and industrial markets.
Located in Cleburne, Texas, TCC distributes automotive chemicals worldwide.
Technical Chemical Company was receiving the equivalent of a financial penalty
when its existing electric provider charged a “Power Factor Correction
Charge.” That electric provider justified the charge, claiming that TCC
failed to operate its equipment at a certain power factor. When the charges
became excessive and potentially damaging to TCC’s bottom line, the corporation
sought an alternative solution. Compounding TCC’s woes were power
quality issues from its existing electric provider. Such power quality issues
caused TCC’s equipment to shut down without warning and go into safety
mode to avoid equipment damage. These interruptions negatively affected TCC’s
To eliminate the seemingly unnecessary Power Factor Correction Charge and resolve power quality issues, TCC was advised that it had to purchase capacitors for all of its equipment and locate them on the TCC side of the meter. Upon further investigation, the excessive cost of the capacitors, finding a location to place them and contracting technicians for the installation would make such an effort prohibitive.
Enter United Cooperative Services (United). Using the expertise of the electric cooperative’s business development, engineering and planning personnel, United was able to demonstrate the cooperative difference and commitment to service by helping TCC correct its power factor issues and thus eliminate the need for a Power Factor Correction Charge. United furnished and positioned the capacitors on the cooperative’s infrastructure, preventing an unnecessary expenditure by TCC and avoiding the need to find a “home” for the
capacitors on the TCC side of the meter. By having capacitors on the power supply side (United’s side of the meter), United was able to make the corrections that TCC needed to be able to maintain its production and meet the demands required in today’s competitive market.
United Cooperative Services offered TCC a way to reduce energy costs by eliminating the Power Factor Correction Charge. Through its expertise, United was able to resolve the power quality issues and eliminate down time, resulting in greater productivity for Technical Chemical Company. United also offered known and trusted account managers to help the client comfortably move through the transition from the existing retail power provider.