Interconnection service fee for generator of industrial and arc Furnace customers

This thesis presents the study of hidden electrical commodity cost. The study will start with theory from many reliable sources. After that, the study will make model to give visualizations about hidden electrical commodity. Model will not complete without case study, this case study will give more visualizations even to non electrical engineering peer. The last purpose of this study is making the comparison between paying TDL and paying the service fee from this study. This study will make model of reactive power unbundling tariff in Indonesia. Independence Power Producer (IPP) gives PLN more excess energy but as a company, IPP will operate to make profit and advantage as big as they can. This profit and advantages will be the economic aspect of the service fee. Captive Power was new chronology in electrical engineering world and as utility company; we must prepare to anticipation this condition. Indonesian Electrical Utility Company CEO with letter number no 03093/101/DIRUT/2010 has forbidden Captive Power. But there are some consumers that really need captive power and the existing one so the charge will base on that. Industry consumer has low Power Factor, this low Power Factor will be the economic aspect of the service fee. Arc Furnace costumers has same characteristic with another industry costumers but they operate theirs with arc furnaces. The risk of using arc furnace will be the economic aspect of the service fee.