Client received two electric bills in February — one covering Jan 15 to Feb 3, and another covering Feb 3 to Feb 28. Normally they get one bill per month. The utility (PPL Electric) says they changed the billing cycle and the short period is a transition bill. But both bills have full demand charges. The client is paying double demand for February. Is this right?
Two bills in one month — utility changed billing cycle
No, that's not right if the tariff has proration language. When a utility changes billing cycles, the transition period should be prorated. You essentially had a 19-day bill and a 25-day bill — neither is a full month. Check PPL's tariff for proration provisions on billing cycle changes. Most tariffs require prorated demand charges for any period shorter than 27-28 days.
Phil is correct. Billing cycle transitions create proration issues that the billing system often handles incorrectly. The client should not pay more in total demand charges during a transition month than they would have paid in a normal month. File for proration on both the short periods. Also verify that the energy charges on both bills are based on actual meter reads, not estimates — sometimes the transition bill uses an estimated read to split the month.
Both should have been prorated. Filed the claim — total overcharge across the two bills was about $920. PPL acknowledged the billing cycle change caused an error and is processing the credit.