Hey everyone, Steve Y. here from Raleigh. I've got a manufacturing client on Duke Energy Schedule SGS (Small General Service) paying about $8,400/month but their peak demand is consistently hitting 95-110 kW. Should they be on Schedule LGS (Large General Service) instead? The threshold seems to be 100 kW but the utility says they're classified correctly. Anyone dealt with similar Duke Energy issues?
Duke Energy Commercial vs Industrial - Need Help with Client Misclassification
Sam L. from Charlotte here. I see this with Duke all the time. The 100 kW threshold for LGS is pretty firm, but you need to look at 12 consecutive months of billing data. If they're crossing that threshold regularly, they should definitely be on LGS. What's their actual production process - welding, machining?
Randy Dawson here. Steve, you're absolutely right to question this. Duke Energy's tariff clearly states that customers with demand exceeding 100 kW for three consecutive months should be moved to Schedule LGS. The rate difference can be substantial - often 15-20% savings on the demand charges alone. You'll need to document those peak demands carefully and request a formal rate classification review. I've seen Duke resist initially, but they'll reclassify when presented with proper documentation. Sam makes a good point about the production process - industrial customers often qualify for even better rates like Schedule OPT if they meet the load factor requirements.
Pete A. from Savannah. Had this exact situation with Georgia Power last year. Similar manufacturing client, similar demand levels. Georgia Power was more cooperative than Duke usually is. Got them moved from Schedule GS-2 to Schedule PL-1 and saved them $1,800/month. The key is persistence and having your demand data organized by billing period.
Elisa F. in Greensboro. Steve, which Duke Energy territory are you in - Progress or Duke Energy Carolinas? The tariff structures are slightly different. Also check if they qualify for any TOU variants - sometimes the industrial TOU rates have better demand charge structures even if the energy rates are similar.
Thanks everyone. It's Duke Energy Carolinas territory. Elisa, good point on the TOU - I'll check Schedule LGS-TOU as well. Pete, what documentation did Georgia Power require for the reclassification? Randy, should I go directly to a supervisor or start with customer service?
Steve, start with a formal written request to Duke's Commercial Rate Review department. Include 12 months of billing data showing the demand patterns, a brief description of the facility and operations, and reference the specific tariff language about the 100 kW threshold. If they push back, escalate to the North Carolina Utilities Commission. Duke usually responds better to written requests with proper documentation than phone calls.
Faye H. from Lynchburg. Be careful about timing - if they approve the reclassification, it typically only goes forward, not retroactive. Unless you can prove the utility made an error in not reclassifying earlier. Document everything with timestamps.
Terrence J. in Birmingham. Just went through this with Alabama Power. Similar situation but they were more reasonable. Got 6 months retroactive adjustment because we could prove the customer had been over the threshold consistently. Worth asking for retroactive even if they say no initially.
Update: Filed the formal request with Duke's Commercial Rate Review department on Monday. They said 4-6 weeks for review. I'll keep everyone posted on the outcome. Thanks for all the advice, especially Randy's detailed guidance on the process.