Putting together a training checklist for demand charge audits. Here's what I always look for: 1) CT ratio errors, 2) Ratchet calculation mistakes, 3) Power factor penalties, 4) Wrong rate schedule applied, 5) Meter multiplier errors. What else should be on this list?
Common demand charge audit red flags - checklist
Temperature correlation is huge. If demand spikes don't align with weather data or facility operations, investigate further. Found a ComEd account with phantom 600 kW spikes that turned out to be meter communication errors.
Great additions everyone. Chester, the contract demand point is important - seen too many auditors flag that as an error when it's actually correct billing per the contract terms.
Time-of-use demand charges are tricky too. Some utilities have different demand rates for on-peak vs off-peak periods. Easy to miss if you're just looking at total monthly demand. Always verify TOU periods against tariff.
Check contract demand vs billing demand. Some customers pay for contracted capacity even when actual usage is lower. Not an error but worth explaining to client. Also verify demand window - 15 min vs 30 min intervals can make big difference.
Kevin's point about temperature is spot-on. Also watch for demand charges during facility shutdowns - had a manufacturing client charged for 400 kW during a 3-week Christmas closure. Turned out to be estimated bills.
Randy, add billing period overlaps - seen cases where utilities double-bill demand charges during meter change-outs or rate schedule transitions. Also check for demand charges on accounts that should be energy-only.
Also watch transformer ownership. Customer-owned transformers sometimes get different demand rate treatment. Had a Georgia Power account where they were applying primary voltage demand rates to secondary service.
Don't forget seasonal rate changes. Xcel Energy switches demand rates between summer and winter periods. Seen bills where they applied summer demand charges in October - $3,200 overcharge on 200 kW account.