Joe N. here from Chesapeake. Got a client with a metal fabrication shop that Duke Energy has been billing on Schedule GS-2 commercial rate for 3 years. Load profile clearly shows industrial pattern - 450kW peak demand, 0.65 power factor, operating 6am-10pm weekdays. Should be on Schedule LGS industrial rate which would save them about $2,800/month. Duke is pushing back saying they need more documentation. What specific docs have you found most effective for manufacturing reclassification cases?
Duke Energy Misclassified Manufacturing Plant - Need Documentation Help
Randy D. here. For Duke manufacturing reclassifications, you'll want to gather: 1) Detailed facility layout showing production equipment vs office space percentages, 2) Process flow diagrams, 3) Equipment nameplate data for major machinery, 4) NAICS code documentation, and 5) At least 12 months of interval demand data showing the industrial load curve. Duke's tariff requires that manufacturing processes constitute at least 51% of the total facility load. I've had success including photos of the production floor and a letter from the plant manager describing operations. The key is proving the primary use classification under their General Service vs Large General Service distinction.
Eleanor W. from Savannah. Had similar issue with Georgia Power last year. What really helped was getting a professional engineer to certify the equipment list and confirm manufacturing classification. Cost $1,200 but saved the client $38K annually. Also make sure you're not missing any TOU variants - Duke has TOU-LGS-A and TOU-LGS-B options that might be even better depending on their shift patterns.
Karen W. in Charlotte. Quick question - what's the demand threshold for Duke's industrial rates? I thought it was 300kW but seeing conflicting info in the tariff book.
Ann G. here. Karen, Duke's Schedule LGS kicks in at 300kW billing demand for 3 consecutive months. But there's also the secondary qualification that manufacturing must be the primary use. I've seen them deny 400kW facilities that were mostly warehouse space. The load factor calculation matters too - industrial typically runs 0.6+ while commercial is often 0.3-0.5.
Walt D. from Pittsburgh. Joe, one thing to watch - Duke sometimes requires a site inspection for manufacturing classification. Have your client prepare for that. Clean up the facility, make sure all equipment is visible and operational. I had one case where they denied because too much floor space looked unused. Also check if they qualify for any power factor credits under the industrial schedule.
Thanks everyone. Randy, that's exactly the roadmap I needed. Eleanor, good point on the PE certification - might be worth it for the documentation strength. Walt, they do have PF correction capacitors so should get those credits. Will report back once I submit the reclassification request.
Tom L. in Boise. Quick tip - if Duke initially denies, ask for their internal rate classification criteria document. Sometimes they apply stricter standards than what's in the published tariff. Had one case where this revealed they were using outdated guidelines.
Update: Duke approved the reclassification! Took 6 weeks and two rounds of documentation but client is now on Schedule LGS effective October 1st. First month savings was $2,640. Tom's tip about the internal criteria was clutch - they initially wanted 60% manufacturing but their own tariff only requires majority use. Thanks for all the help!
Beatrice S. from Salem. Congrats Joe! Quick question - did you pursue any retroactive recovery for the 3 years of overcharges? Oregon rules allow up to 24 months back but not sure about Duke's territory.
Beatrice, Duke only allowed 12 months retroactive in Virginia. Still working on that - should be another $31K recovery. Their initial offer was 6 months so had to push. Documentation showing the facility qualified from day one was key.