Has anyone else seen ComEd using a 24-month ratchet period instead of the standard 12 months? I'm reviewing a manufacturing client's bills and their demand charges seem to be holding a peak from way back in January 2012 even though we're now in 2014. The tariff language in Rate 6L is confusing - it mentions "rolling 24-month period" but I thought that was only for certain large industrial accounts. Anyone dealt with this before?
ComEd Ratchet Clause - 24 months instead of 12?
Scott, that doesn't sound right. I've audited dozens of ComEd accounts and never seen a 24-month ratchet. Are you sure you're reading the billing determinants correctly? Sometimes they show historical data for comparison but the actual billing demand should only look back 12 months max. What's the account's rate schedule exactly?
It's definitely Rate 6L - Large General Service. The peak they're billing was 1,847 kW in January 2012, but the actual monthly demands since then have been much lower, mostly in the 900-1100 kW range. Yet they keep billing the 1,847 kW every month. I've called ComEd twice and gotten different answers each time.
Scott, I think you might have found a billing error. Rate 6L should absolutely be 12 months maximum ratchet. I'd suggest filing a formal dispute and requesting bills going back 24 months. If they've been over-billing demand charges for that long, you're looking at a significant refund. Document everything and don't let them brush you off with vague explanations.
Thanks David. I filed the dispute last week and just heard back - turns out there was a "system error" that was holding that old peak. They're processing a credit for $23,400 covering 18 months of overbilling. Lesson learned: always question ratchet periods that seem too long!
Great catch Scott! This is exactly why we do what we do. "System errors" that always seem to favor the utility... funny how that works. I'm going to double-check my other ComEd accounts now.
Excellent outcome Scott! $23K is a nice recovery. Everyone should take note - this kind of error is probably more common than we realize. Always verify that ratchet periods match the published tariffs.