Elisa from Omaha. Found a rate class error that has persisted through three different ownership changes over 14 years. The building started as a light industrial facility, was converted to a food processing operation by the second owner, then acquired by my client who expanded the food processing capacity. Through all three ownerships the account remained on the original light industrial rate. Each new owner simply inherited the account without ever reviewing the classification. Found $41,000 in recoverable overcharges.
How a rate class error persisted through three ownership changes
Boyd from Bismarck. This is the classic inherited error. Every new owner assumes the prior owner had it figured out. Nobody does the review.
The utility's position was that they were not notified of the changes in operation. Which is technically true — none of the previous owners filed a service change request.
Boyd again. That argument may limit retroactive recovery to the current ownership period depending on your state's rules. But the forward savings are the same regardless and the current owner clearly qualifies for the food processing rate.
Stan from Boise. Did you try to argue that the utility should have identified the change based on the billing data? Fourteen years of food processing load looks very different from light industrial load on interval data.
Stan I did make that argument. The 15-minute demand data showed refrigeration cycling consistent with a cold storage or food processing operation for at least the last 8 years. The utility's billing team should have flagged it.
Stan again. That argument about the utility's own data showing the changed use is worth pursuing at the PUC level. It shifts the responsibility from the customer to the utility to monitor and verify account classifications.