Just finished a nightmare case with Duke Energy in Tennessee. Manufacturing client was stuck on Schedule GS-2 general service rate when they clearly qualified for Schedule IS industrial service. Demand averaging 340 kW but they had them classified as commercial. Took 6 months of back and forth to get reclassified. Anyone else dealing with Duke's resistance on industrial reclassifications?
Duke Energy screwed up industrial classification - 18 months of overpayment
Andre W. - been there with Alabama Power which is part of Southern Company like Georgia Power. They fight tooth and nail on reclassifications because they lose revenue. What documentation did you provide to make your case? I've found manufacturing equipment lists and process flow diagrams help establish true industrial use.
Good thread Andre W. and Val M. Duke Energy has been particularly difficult lately on rate reclassifications. For industrial qualifications, the key is demonstrating continuous process manufacturing or significant motor loads that justify the rate class. The tariff book defines industrial service pretty specifically - usually requires manufacturing, processing, or assembly operations as the primary use. What was the client's actual business?
Thanks Randy D. and Val M. Client manufactures automotive parts - definitely qualifies as industrial processing. We provided equipment schedules showing injection molding machines, conveyor systems, and compressed air systems. Duke initially claimed the facility had "too much office space" to qualify for industrial rates. Complete nonsense since the tariff doesn't specify office space limitations.
Andre W. - Duke Energy here in Charlotte pulled the same stunt on one of my clients. They tried to say a food processing plant was "commercial" because they had a small retail counter. Had to escalate to the NC Utilities Commission to get it resolved. What rate differential were you looking at in savings?
Sam L. - monthly savings averaged $2,800 on Schedule IS versus GS-2. Demand charges dropped from $18.50/kW to $11.25/kW and energy rates were about 1.2 cents lower per kWh. Over 18 months of misclassification, total overpayment was around $47,000. Still fighting for retroactive recovery but Duke is dragging their feet.
That's significant money Andre W. Dominion here in Virginia has similar issues with mixed-use facilities. Did you get any retroactive adjustment or just prospective rate changes? I've had better luck when I can show the utility made the initial classification error versus the customer requesting a change.
Sandra P. - still negotiating the retroactive piece. Duke agreed to 12 months lookback but we're pushing for the full 18 months since it was clearly their misclassification from day one. The facility was built in 2022 and should have been industrial from initial service connection. New construction cases seem to have better precedent for full recovery.
Andre W. - similar experience with PPL here in Pennsylvania. They misclassified a pharmaceutical packaging facility as commercial for 14 months. Key was demonstrating the primary use test from the tariff language. Manufacturing and processing operations constituted 78% of the floor space and 85% of electrical load. Documentation is everything in these cases.
Great thread everyone. Georgia Power just approved an industrial reclassification for a client after 8 months of fighting. Food processing facility was on Schedule GS-TOU when they clearly qualified for Schedule IN. Monthly savings of $3,200 and we got 15 months retroactive adjustment. The key was load factor analysis showing industrial usage patterns versus typical commercial profiles.
Dave C. - that's awesome on the retroactive recovery. What load factor ranges did Georgia Power consider "industrial" versus commercial? Duke seemed to focus more on the type of business rather than electrical characteristics. Would love to use load factor analysis as supporting evidence for future cases.
Andre W. - Georgia Power looks for load factors above 65% as indicative of industrial processes. Commercial accounts typically run 45-55% due to business hours operation. Industrial facilities with continuous or extended operations show much higher utilization of their connected demand. Food processing, manufacturing, and chemical plants almost always exceed 65% load factor.
Excellent insights Dave C. Load factor analysis is often overlooked but very compelling evidence for rate reclassifications. Andre W. - curious about your final outcome with Duke. Were you able to get the full 18 months recovered? These cases help establish precedent for future reclassifications, especially with the same utility.