Agricultural Rate Qualification Hell with Georgia Power

Started by Rachel K. — 7 years ago — 1 views
Rachel K. in Atlanta dealing with frustrating situation. Client runs hydroponic greenhouse operation, clearly agricultural use, but Georgia Power has them on Schedule PL-1 (Large Power) instead of agricultural Schedule A-2. They're using about 180,000 kWh monthly with 420 kW peak demand. GP claims greenhouse doesn't qualify as agriculture since it's not 'traditional farming' in soil. Anyone dealt with hydroponic agricultural rate issues? The rate difference is substantial - about $8,000 monthly.
Donna H. from Nashville. TVA has similar hydroponic language issues. Had to get state agriculture department letter confirming hydroponics qualifies as agricultural production under state law. Used that to pressure TVA into reclassification. Georgia might require similar state agency confirmation.
Rachel, Randy here. Georgia Power can be particularly difficult on ag rates. You'll need more than just state ag department confirmation. Get USDA farm number if possible, business license showing agricultural classification, property tax records showing agricultural use exemption, and detailed description of crop production. Also check Georgia Power's tariff definition of agricultural - some utilities exclude certain hydroponic operations or require minimum acreage. The $8K monthly difference makes this worth a serious fight including potential PSC complaint if needed.
Don G. in Fort Worth. Oncor territory here but dealt with similar issue. Utility tried to claim greenhouse was manufacturing not agriculture. Had to get agriculture extension office letter explaining hydroponic farming is legitimate crop production. Also helped that client was selling to farmers markets and had organic certification. Show the entire farm-to-market chain.
Thanks for input everyone. Got the USDA farm number and state ag department letter. Randy, where do I find Georgia Power's specific agricultural tariff language? Their website tariffs are confusing and I want to make sure I'm addressing their exact qualification criteria.
Rachel, check Georgia Power Schedule A-2 section 1 definitions. Should specify 'agricultural operations' and may exclude certain processing activities. Also look for acreage minimums or crop type restrictions. If tariff language is ambiguous about hydroponics, that actually works in your favor for arguing inclusion. Their burden to prove exclusion if not explicitly stated.
Marcus F. in Detroit. DTE territory but wanted to mention - some utilities require agriculture to be primary business activity. Make sure greenhouse isn't subsidiary of manufacturing company or something that could disqualify ag rates. They look at parent company classification sometimes.
Good point Marcus. This is standalone agricultural business, not subsidiary. Filed formal complaint with Georgia PSC after GP denied reclassification despite all documentation. Still waiting for hearing date. Will update when resolved.
Final update: PSC ruled in our favor! Georgia Power forced to reclassify to Schedule A-2 with retroactive billing back 15 months. Total recovery $127,000. Thanks everyone for guidance on documentation requirements.