Pulp mill near Memphis getting billed for transmission costs that seem way too high. Entergy charging them for 138kV service but plant takes delivery at 46kV through utility-owned transformer. Should transmission charges be lower for secondary delivery?
Entergy Mississippi transmission cost allocation error
Check the delivery voltage definition in Entergy's tariff. In Mississippi, transmission charges often depend on actual delivery voltage, not contract demand level. 46kV service should qualify for distribution rates.
Had similar issue with chemical plant in Memphis on MLGW. They were being charged transmission rates for distribution-level service. Filed complaint with Tennessee PUC and got it corrected. Refund was $95,000.
Document the actual service voltage at the meter. If delivery is at 46kV, that's distribution level in most states. Transmission typically starts at 69kV or higher. File formal rate classification review.
Similar case with Mississippi Power. Key was getting engineer to verify service configuration. Utility had been billing transmission rates for 20 years on what was actually distribution service. Worth pursuing.
Voltage classification errors are common with industrial accounts served through utility transformers. Verify actual delivery voltage and compare to tariff definitions. Many utilities will correct these voluntarily once errors are documented.