Charles from Wichita. Wanted to share how I restructured my rate class work from one-time engagements to an annual retainer service. The argument is simple: rate schedules change, utility filings happen, a client's operations evolve. A rate class that was correct last year may not be correct this year. I now offer an annual rate class review as part of an ongoing maintenance package. Curious whether others have moved in this direction.
Rate class review as a recurring annual service — how I structured it
Ian from Davenport. I have been thinking about this. What does your annual review actually cover?
Charles here. Each year I pull the most recent 12 months of billing, check for any tariff changes the utility filed that might affect the account, review any operational changes the client made, and confirm the current rate class is still optimal. Takes about 3 to 4 hours per client and I charge a flat annual fee.
Ian again. Do clients see the value when there is no finding? I worry about retaining clients in years where I do not find anything.
Charles again. I frame it as insurance and professional diligence — the same reason they pay an accountant annually even in years with no tax issues. About two-thirds of clients stay on the annual plan. And in the years where I do find something the retainer fee looks like a bargain.
Keith from Spokane. The proactive angle is compelling. If a utility files a rate increase or a new schedule I can tell my clients before they see it on their bill. That early warning has value independent of whether I find an error.
Keith exactly. I send a brief annual report to every retained client summarizing what I reviewed, what changed in the tariff environment, and what the risk profile of their account looks like for the coming year. Clients appreciate the professionalism and it justifies the retainer clearly.
Ian one more time. What is your annual fee range?
Charles last time. Between $800 and $2,500 per account per year depending on complexity. Multi-location accounts are at the higher end. Simple single-meter accounts at the lower. The math works because I am doing it efficiently for multiple clients in the same territory with the same tariff.