Found what looks like demand charge errors on PSE&G industrial account. Customer billed for 1,240 kW demand but interval data shows max was only 980 kW. Demand rate is $18.50/kW so we're talking $4,810 overcharge per month. Anyone dealt with PSE&G demand disputes before?
PSE&G demand charge errors - need advice
Greg, PSE&G can be tough on demand disputes. You need to get the actual meter test records and compare to their billing system. Sometimes there's a lag between meter reads and billing corrections.
Check if they have power factor penalties rolled into the demand charge. PSE&G does that on some rate schedules - low PF can inflate the billing demand above actual kW.
Tony, that might be it. Power factor averaged 0.82 last month. Does PSE&G apply PF correction to demand charges on schedule LP rate?
Yes Greg, LP schedule has PF adjustment. At 0.82 PF, your 980 kW gets adjusted to about 1,195 kW billing demand. Formula is kW divided by PF when PF is below 0.90. That explains most of your discrepancy.