The Power Control Division of GNB Technologies, commissioned on May 13, 1996 a new facility which houses a 5-MW battery energy-storage system (BESS) at GNB＇s Lead Recycling Centre in Vernon, CA. When the plant loses utility power (which typically happens two or three times a year), the BESS will provide up to 5 MW of power at 4160 VAC in support of all the plant loads. Since the critical loads are not isolated, it is necessary to carry the entire plant load (maximum of 5 MVA) for a short period immediately following an incident until non-critical loads have been automatically shed. Plant loading typically peaks at 3.5 MVA with critical loads of about 2.1 MVA. The BESS also provides the manufacturing plant with customer-side-of-the-meter energy management options to reduce its energy demand during peak periods of the day. The BESS has provided a reduction in monthly electric bills through daily peak-shaving. By design, the battery can provide up to 2.5 MWh of energy and still retain 2.5 MWh of capacity in reserve to handle the possibility of a power outage in protecting the critical loads for up to 1 h. By storing energy from the utility during off-peak hours of the night in the batteries when the cost is low (US4.50 per kWh), GNB can then discharge this energy during high demand periods of the day (US$14.50 per kW). For example, by reducing its peak demand by 300 kW, the lead-recycling centre can save over US$4000 per month in its electric bills. The BESS at Vernon represents a first large-scale use of valve-regulated lead-acid batteries in such a demanding application. This paper presents a summary of the operational experience and performance characteristics of the BESS over the past 2 years.