Just wrapped up the most frustrating tariff dispute of my career and thought I'd share. Client in Manhattan was being billed under ConEd Schedule 2 - Secondary General but we believed they qualified for Primary Service under Schedule 1. The difference was about $8,000 per month in savings. ConEd initially said the customer's transformer configuration didn't qualify, but the tariff language was ambiguous about "customer-owned primary equipment." We had three different ConEd reps give three different interpretations. Ended up filing a formal complaint with the NY PSC. The case dragged on for 18 months with multiple technical conferences and site visits. - Priya N.
War story: 18-month tariff interpretation dispute with ConEd
Priya, that sounds like a nightmare! How did it finally resolve? ConEd can be really stubborn on rate schedule classifications. I've seen similar issues with their transformer ownership requirements. - Yuri P.
We eventually won, but it was a pyrrhic victory. The PSC ruled that ConEd's tariff language was indeed ambiguous and ordered them to clarify it. My client got moved to Primary Service and received about $95,000 in refunds for past overcharges. But the legal and consulting costs ate up most of the benefit. The real win was ConEd had to revise their tariff to make the transformer ownership requirements crystal clear. - Priya N.
Priya, thanks for sharing this. It's a perfect example of why tariff language precision matters so much. Ambiguous terms always favor the utility until someone challenges them. Your client essentially paid to get the tariff fixed for everyone else. I've seen this pattern many times - utilities write vague language, interpret it in their favor, until forced to clarify by regulators. The transformer ownership issue comes up frequently in major metro areas. - Randy Dawson
Similar situation with Delmarva Power here in Delaware. Their Primary vs Secondary classification criteria were a mess until someone finally challenged it. These cases are expensive but necessary to keep utilities honest. - Laura F.
The transformer ownership question is huge. Indianapolis Power & Light has very specific language now but it wasn't always that way. Utilities prefer the ambiguity because most customers don't challenge rate classifications. - Greg L.
Just curious - did ConEd try to settle before it went to the PSC? Dayton Power usually tries to make a deal when they know their position is weak. - Linda
Linda, they offered a partial settlement about 12 months in - basically admitting they were wrong but only offering 6 months of refunds instead of the full period we claimed. Client rejected it because we knew we had a strong case. In hindsight, maybe we should have taken it given the legal costs, but the principle mattered. - Priya N.