Just discovered a client in Charlotte was on Schedule SGS (small general service) instead of Schedule LGS (large general service) since their facility opened in 2021. They're running injection molding equipment with 450kW demand but Duke had them classified as commercial retail. Anyone else see Duke resist reclassification on manufacturing accounts? Looking at $18K in overcharges. - Marcus W.
Duke Energy misclassified manufacturing facility as commercial for 3 years
Marcus, Duke can be particularly stubborn on manufacturing reclassifications. You'll need the SIC code documentation, equipment schedules showing industrial processes, and preferably a site visit report. File the reclassification request in writing and reference their Tariff Section 3.2.1 regarding industrial classification criteria. For retroactive recovery, Duke typically only goes back 12 months unless you can prove their error in the initial classification. Document everything and push for the full 3 years - Randy D.
Had similar issue with Georgia Power last year. Manufacturing client was on Schedule GS-1 instead of Schedule TOU-GSD-6 for two years. GP fought it initially but caved when we threatened a PSC complaint. Got 18 months retroactive at $24K recovery. The key was proving the industrial process classification from day one. - Lee C.
Duke Energy in the Carolinas seems to default everything to commercial unless you specifically request industrial classification during the application process. I've seen this on at least 6 accounts in Charlotte area. Always check the rate schedule immediately after service connection. - David K.
What SIC codes are you showing Marcus? Some manufacturing operations get gray area treatment depending on the specific processes. Also check if they meet the minimum demand requirements for LGS - I think Duke requires 30kW average for 3 consecutive months. - Ted H.
Ted, they're SIC 3089 (plastics manufacturing) with consistent 380-450kW monthly peaks. Way over the 30kW threshold. Duke's argument is the front office space makes it "mixed use" but 85% of the building is production floor. Randy, thanks for the tariff reference - filing the formal request tomorrow. - Marcus W.
Mixed use properties are always tricky but with 85% manufacturing Duke should approve that reclassification. In Florida FPL uses a 60% rule - if more than 60% of the facility is industrial process then it qualifies for industrial rates. Check Duke's tariff for similar language. - Vernon C.
Marcus, curious what the rate difference works out to per kWh? I'm working a similar case with TVA territory but the savings aren't as dramatic as I hoped. Manufacturing rates here are only about 0.8 cents lower than commercial. - Carol J.
Carol, the demand charge difference is huge - SGS is $18.50/kW vs LGS at $11.20/kW. With 400kW average that's almost $3K per month just in demand charges. Energy rate difference is smaller but still adds up. Total savings around $42K annually once reclassified. - Marcus W.
Update us on Duke's response Marcus. If they deny the reclassification, the next step is filing with the North Carolina Utilities Commission. I have template complaint language for Duke manufacturing reclassifications if needed. The key is establishing the industrial nature of the operation meets their tariff definitions. - Randy D.
Randy, Duke approved the reclassification effective September 1st! They're giving me 18 months retroactive credit worth $27K. Not the full 3 years but client is thrilled. The formal written request with SIC documentation and equipment list did the trick. Thanks for the guidance everyone. - Marcus W.
Great outcome Marcus. This thread should be required reading for new members. I'm bookmarking the Duke tariff reference Randy provided. Always amazed how much money gets left on the table with wrong rate classifications. - Clifford H.