Mississippi Power incorrect rate classification cost me credibility

Started by Darrell F. — 10 years ago — 4 views
Told a Jackson client they were on wrong rate schedule. Moved them from SGS-2 to LGS-1 expecting big savings. Bill went UP by $280/month. Demand charges on LGS-1 were higher than I calculated. Client was not happy with my 'expertise'.
Ooof. Did you check the demand ratchet provisions on LGS-1? Mississippi Power has some tricky language about minimum billing demand.
I always run parallel calculations for 12 months before recommending rate changes. Sometimes the current rate really is optimal despite looking wrong.
Had similar issue with SCE&G. Small manufacturing client looked like perfect fit for Rate 20 but their load factor was too low. Demand charges killed the savings.
Lesson learned. Now I model every rate option with actual usage data before making recommendations. Takes longer but saves relationships.
Rate optimization requires understanding not just the tariff language but the client's actual load characteristics. A good rule: if projected savings exceed 15%, double-check your math.