Duke Energy apartment billing error - $180K

Started by Meredith C. — 12 years ago — 2 views
Just found a massive billing error on a 320-unit master-metered complex in Raleigh. Duke Energy has been billing under Schedule LGS (large general service) instead of Schedule MDT (multi-dwelling). Difference is about $3,200 per month. Going back 4 years for total recovery of $180,000. Property management company never caught it.
Duke has very specific rules about when MDT applies. In Florida, we have similar issues with FPL's apartment rates. The key is proving that 75% or more of the load is residential. Did you document the unit mix?
APS has the same issue here in Phoenix. Make sure you get the load study showing residential vs commercial loads. Pool equipment, fitness center, and office areas count as commercial load under most tariffs.
This is exactly why apartment complexes need regular rate schedule reviews. Utilities rarely volunteer to move customers to lower-cost schedules, even when they clearly qualify. Nice find, Meredith.