Working on a manufacturing client in Phoenix on APS Schedule E-32. They're being charged power factor penalties but the calculation doesn't match the tariff. Tariff says penalty applies when PF drops below 90% but they're charging penalties at 92%. Anyone else see this with APS?
APS power factor penalty calculation seems wrong
APS changed their PF penalty threshold in 2009. It used to be 85%, went to 90%, but there was confusion in billing systems. I'd pull the actual tariff effective date and compare to bill dates.
Had same issue last year. APS was using the old 85% threshold but applying the new penalty rate. Got $4,800 refund once we showed them the tariff discrepancy. File a formal complaint with ACC if they won't fix it.
The penalty calculation itself can be tricky too. Make sure they're using the correct kVAR hours in the formula. I've seen billing errors where they use kVA instead of kVAR.
Power factor penalty disputes are common during tariff transitions. Always verify the tariff version in effect for each billing period. Document everything and don't hesitate to escalate to the commission if the utility won't cooperate.