How I read a 400-page tariff book without losing my mind

When I started auditing I would try to read tariff books front to back. A 400-page Georgia Power tariff book nearly broke me. Took two weeks and I retained maybe 20% of it. Over the years I've developed a system that lets me find what I need in about 30 minutes. Sharing it here because I wish someone had told me this on day one.

Step 1: Go straight to the table of contents and find the rate schedule section. Ignore everything before it.
Step 2: Identify every rate schedule that could potentially apply to your client based on voltage level and usage range.
Step 3: Read the eligibility criteria for each candidate rate — this is where the gold is.
Step 4: Check the riders and adjustments section for any applicable surcharges or credits.
Step 5: Read the general terms and conditions ONLY for sections relevant to your findings — metering, billing adjustments, power factor.

That's it. You don't need to read the residential rates, the lighting schedules, or the interconnection standards unless they're directly relevant to your client.

This is exactly what I do. I'd add one more step — always download and date-stamp the tariff PDF. Utilities update tariffs after rate cases and the online version may change without notice. If you're filing a claim for overcharges that occurred under the old tariff, you need proof of what the tariff said at the time. I keep a folder on my computer organized by utility and effective date. Saved me once when Ohio Edison updated their tariff and the new version didn't have the rate schedule I was citing. I had the dated PDF to prove it existed.

The eligibility criteria point is critical. I can't count how many times I've found a client on the wrong rate because the eligibility criteria changed during a rate case but nobody at the utility reclassified existing accounts. Duke Energy restructured their commercial rates in 2009 and changed the demand threshold between Schedule OPT and Schedule LGS from 30 kW to 50 kW. Hundreds of accounts that were correctly on LGS before the change should have been moved to OPT afterward but never were. That's free money for any auditor who reads the eligibility criteria carefully.

Excellent thread. The systematic approach Jim described is how every auditor should work. I'd emphasize one thing: read the tariff BEFORE you look at the bills. Too many new auditors start with the bills and try to figure out the rates backward. That's much harder. Start with the tariff, understand what rates are available, then look at the bills to see which rate the client is on. If the tariff says your client should be on Rate GS-3 based on their usage profile, and the bill says they're on Rate GS-1, you've found your error. The tariff is your audit tool — the bill is just the evidence.

Randy that's a great way to put it — tariff first, bills second. I was definitely doing it backwards for my first year. Would have found errors faster if I'd started with the tariff.