What it means

In Texas, electricity used predominantly, more than half, for certain exempt purposes, such as manufacturing or processing, may qualify for an exemption from state sales tax on that meter’s electricity. Several other states have comparable provisions.

A predominant use study is the analysis that documents how electricity at a meter is actually used. It inventories the equipment served by the meter, estimates the consumption of each, and establishes what share goes to exempt versus non-exempt use.

What the study involves

• An inventory of equipment on the meter and its electrical load
• Operating hours and duty cycles for each piece of equipment
• A calculation of exempt versus non-exempt consumption
• Documentation supporting the percentage claimed

Our role

Radiant Energy Partners conducts predominant use studies for its clients.

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