Carlos R from San Antonio, TX. CPS Energy territory. New client just opened a large Mexican restaurant. CPS activated the meter on March 1 but the first bill covers March 1 through April 16 — 47 days. The bill is $6,800 and the client is in a panic because he budgeted $4,000-4,500/month for electricity. I told him the first bill is 47 days not 30 so the charges are proportionally higher. But when I actually checked, the demand charge was NOT prorated. Full monthly demand rate of $10.85/kW on a peak of 145 kW. That is $1,573 in demand charges for 47 days when it should be prorated to $1,573 times 30/47 equals $1,004. Overcharge of $569 on the demand alone.
New account first bill covers 47 days — proration nightmare
Carlos, CPS Energy is a municipal utility so they have their own rules outside the Texas PUC. But most munis still have proration provisions for initial and final bills. Check the CPS rate manual section on billing period adjustments. Municipal utilities in Texas are generally easier to work with on billing corrections because they answer to the city council, not the PUC.
Felix, found the provision. CPS Rate Manual Section 4.7 says initial bills covering more than 35 days shall have demand charges prorated to a 30-day equivalent. Clear as day. Called CPS billing and they acknowledged the error. Credit of $569 applied to the next bill.
Quick resolution — that is the advantage of municipal utilities. They can make billing corrections without going through a formal dispute process. Carlos, since this is a new restaurant, you should also verify the rate schedule assignment. CPS has specific rates for commercial cooking operations that might be more favorable than the general commercial rate.
Randy, great tip. I compared the general commercial rate to the CPS Commercial Cooking rate (CC-TOU). The CC rate has a lower demand charge but a slightly higher energy rate. For a restaurant that runs heavy kitchen equipment during peak hours, the demand savings outweigh the energy premium. Switching to CC-TOU would save this client about $2,100/year.
Carlos, one more thing on new restaurant accounts — check whether the client qualifies for the CPS economic development rider. San Antonio has an incentive program for new businesses that provides a 10% discount on the first 24 months of service. Many new business owners do not know about it.
Angela, I had no idea that existed. Checking now.
Client qualifies for the economic development rider. 10% discount for 24 months. On an estimated $4,500/month bill, that is $450/month or $10,800 over the two years. Combined with the rate schedule switch saving $2,100/year and the $569 proration correction, this new client is looking at over $15,000 in total savings from one audit of their very first bill. He is telling every restaurant owner he knows about AAUBA.
$15,000 in savings found on a first bill audit for a new restaurant. And the referral potential from a happy client in the restaurant industry is enormous — they all know each other. Outstanding work Carlos.