Greg S from Omaha, NE. OPPD territory. A grocery store client switched from the standard commercial rate to OPPD TOU rate last year because an energy broker told them they would save 15%. The broker did a rough analysis showing the store could save by running the walk-in coolers and freezers harder during off-peak hours to pre-cool and then coast during peak. In theory, great. In practice, the store manager never actually changed the refrigeration controls. The compressors run the same 24/7 schedule as before. But now they are paying the higher TOU demand charge with zero load shifting benefit. They are $8,400 worse off over the last 12 months than they would have been on the standard rate.
Client switched to TOU voluntarily and it backfired badly
Greg, this is the classic TOU trap. The savings only materialize if the customer actually changes behavior. A grocery store that runs the same refrigeration cycle 24/7 gets zero energy shifting benefit but pays a premium demand charge for the privilege. The broker should have verified the load shifting was implemented before recommending the switch.
The good news is OPPD should allow the client to switch back to the standard rate. Most utilities let customers change rate schedules once per year with 30 days notice. The bad news is the 12 months on the wrong rate are probably not recoverable since the customer voluntarily elected TOU. This is not a utility error — it is a bad recommendation by a third-party broker.
Randy, that is what I figured. The client asked if they can go after the broker for the $8,400 difference. I told them that is a legal question beyond my scope but the broker probably has a disclaimer in their agreement limiting liability for rate recommendations. Lesson learned.
Greg, before you give up on recovering anything — check whether OPPD has a provision allowing customers who switch to TOU to return to their previous rate within the first 12 months as a trial period. Some utilities offer this specifically to encourage TOU adoption without risk. If OPPD has a trial provision, the switch-back could be retroactive.
Chuck, that is worth checking. I pulled the OPPD tariff and there is a TOU trial provision. Customers who elect TOU for the first time may request a return to their previous rate within 12 months and OPPD will recalculate the bills at the standard rate for the trial period. This is exactly what we need. Filing the request tomorrow.
Update: OPPD confirmed the TOU trial provision applies. They are recalculating 12 months of bills at the standard commercial rate and issuing a credit for the difference. Credit amount: $8,200. Almost the full $8,400 I estimated — the small difference is rounding in the rebilling. Client is thrilled and I look like a hero even though Chuck''s tip did the heavy lifting.
This is why the forum exists — collective knowledge. Chuck knew about a tariff provision that turned a dead-end case into an $8,200 recovery. Good work everyone.