Omar B from Tucson, AZ. TEP territory. Client is a large resort hotel that enrolled in TEP demand response program two summers ago. The program pays a monthly credit of $4.50/kW of committed curtailable load in exchange for the client agreeing to reduce demand during grid emergencies. My client committed 200 kW of curtailable load — mainly HVAC and pool equipment. The credit should be $900/month during the May-September demand response season. But I have reviewed 2 full seasons of bills and the credit has never appeared. 10 months of missing credits totaling $9,000.
Client enrolled in demand response but never getting the credit
Omar, demand response enrollment errors are surprisingly common. The program is usually administered by a different department than billing, and the enrollment does not always get communicated to the billing system. Does your client have a signed demand response agreement with a TEP enrollment confirmation?
Randy, yes. Signed agreement dated March 2016 with an enrollment confirmation email from the TEP demand response coordinator. The agreement specifies 200 kW of committed load and the $4.50/kW monthly credit during the demand response season. Client even participated in two actual curtailment events last summer and reduced load as required. They held up their end. TEP just never started the credits.
Omar, I had the same issue with an Arizona Public Service demand response enrollment in Tucson. APS had the enrollment in their demand response system but it was never linked to the billing account. The demand response department and the billing department literally use different databases with no automatic sync. A manual billing code has to be entered and nobody did it.
Patricia, that sounds exactly like what happened here. I called the TEP demand response coordinator who confirmed the enrollment is active and my client participated in both curtailment events. Then I called TEP billing and they have no record of any demand response credit code on the account. Two departments, zero communication.
Got the TEP demand response coordinator and the billing supervisor on a three-way call. The coordinator provided the enrollment ID and the billing supervisor entered the credit code on the spot. She confirmed the credit will appear on the next bill and she is processing retroactive credits for the 10 missed months. Total credit: $9,000.
Quick resolution once you got the right people talking. Omar, this is a reminder to check for program enrollment credits on every commercial account — demand response, economic development, interruptible service, load management. These programs offer real credits that are easy to enroll in and easy for the billing system to miss.
Good advice Randy. I am now asking every client whether they are enrolled in any utility programs — demand response, efficiency rebates, renewable energy credits, anything. If they are enrolled, I verify the credits are actually appearing on the bills. If they are not enrolled, I check whether they qualify. Either way it adds value to the audit.