Been fighting MLGW on a ratchet clause dispute for 18 months now. Customer shutdown production line in Jan 2015, demand dropped from 850 kW to 320 kW. MLGW keeps applying 85% ratchet based on old peak. That's 722 kW billing demand at $12.40/kW - extra $4,985/month. Anyone have success getting MLGW to waive ratchet for permanent load reduction?
MLGW ratchet dispute - 18 months and counting
Roy, MLGW is notoriously stubborn on ratchet waivers. You need to prove the load reduction is permanent and document equipment removal. Photos, electrical permits, anything showing the capacity was physically eliminated.
Had similar case with MLGW in 2014. Required customer to file formal application with engineering drawings showing disconnected equipment. Process took 8 months but they eventually approved ratchet reset. Refund was $47,000.
Bill, did your customer have to pay any fees for the ratchet reset application? MLGW mentioned a $2,500 engineering study fee but that seems excessive.
Yes, there was a fee but it was $1,800 in 2014. Still worth it given the monthly savings. Key is having detailed documentation ready before you file. MLGW rejected our first application due to insufficient evidence.
Roy, if you're still stuck after 18 months, might be worth escalating to Tennessee Public Utility Commission. MLGW has to follow state regulations on ratchet provisions. Sometimes regulatory pressure helps move things along.