Utility Bill Audit Checklist

A thorough utility bill audit requires checking dozens of individual items on every bill. This checklist covers everything a professional auditor examines when reviewing a commercial electric, gas, or water bill.

Account Information

• Account number matches the correct service location
• Rate schedule code is appropriate for the business type and usage level
• Meter number matches the physical meter at the premises
• Service address is correct
• Customer name and billing address are correct

Billing Period

• Billing dates are sequential with no gaps or overlaps between months
• Number of billing days is within normal range (28 to 33 days)
• No missing months in the billing history
• Meter read type is Actual (not Estimated) — flag any estimated reads for follow-up

Meter and Usage Data

• Meter readings are sequential (current read is higher than previous read)
• Meter multiplier (CT ratio) matches the installed equipment
• Calculated consumption (current read minus previous read times multiplier) matches the billed consumption
• Usage is consistent with the same month in prior years (seasonal comparison)
• No sudden unexplained spikes or drops in consumption

Demand (Electric Bills)

• Actual measured demand is recorded correctly
• Billing demand matches the tariff's ratchet formula (if applicable)
• Ratchet percentage matches the tariff (typically 70% to 80%)
• Ratchet lookback period is correct (typically 11 months)
• Billing demand is not higher than it should be based on the ratchet calculation
• Time-of-use demand periods (peak/off-peak) are allocated correctly

Energy Charges

• Energy rate ($/kWh) matches the current tariff for this rate schedule
• For block rates: each tier's consumption and rate are correct
• For TOU rates: peak, shoulder, and off-peak kWh allocations are correct
• Total energy charge equals consumption times the applicable rate(s)

Demand Charges

• Demand rate ($/kW) matches the current tariff
• Demand charge equals billing demand times the demand rate
• Minimum demand provisions are applied correctly (if any)

Fuel and Variable Charges

• Fuel cost adjustment rate matches the current month's published rate
• Fuel charge is applied to the correct kWh base
• All riders and surcharges are currently authorized and not expired
• Each rider's rate matches the published schedule
• No duplicate surcharges under different names

Power Factor (Electric Bills)

• Power factor reading is present and appears reasonable (typically 0.80 to 1.00)
• If power factor is above the tariff threshold, no penalty should be applied
• If a penalty is applied, verify the formula matches the tariff
• Reactive demand (kVAR) reading is correct

Taxes and Fees

• Sales tax rate matches the current state and local rates
• Tax is applied only to taxable charges (some charges may be exempt)
• Franchise fee percentage matches the local ordinance
• Franchise fee is calculated on the correct base
• All applicable tax exemptions are being applied

Gas-Specific Items

• Pressure correction factor is correct for the meter's operating pressure
• BTU factor is applied correctly
• Billed therms equal metered CCF times pressure factor times BTU factor
• For transport accounts: delivery and commodity charges are separated correctly

Totals and Cross-Checks

• Sum of all individual charges equals the total amount due
• Total amount due is consistent with prior months after accounting for seasonal variation
• Cost per kWh (total divided by consumption) is within expected range
• No unexplained charges, credits, or adjustments