Has anyone seen a 15-month ratchet clause with Duke Energy? I'm auditing a manufacturing client and their Schedule LGS shows a demand ratchet that looks like it extends 15 months instead of the typical 12. Tariff language is a bit confusing. Anyone familiar with their current tariff structure?
Duke Energy ratchet clause - 15 months?
Harriet, I've seen that with Duke. It's actually 12 months plus the current billing month, so effectively 13 months total. The way they word it can be misleading. What's the actual tariff reference on the bill?
Thanks Margie and Irene. The tariff shows Schedule LGS-TOU. Looking at 13 months of billing history, it does seem like they're using a true 12-month lookback plus current month. Client's peak was 2,847 kW in February but they're still being billed for 2,680 kW demand charge from last January.
That sounds right Harriet. Duke's ratchet is "highest demand in the current month or preceding 12 months." So you're looking at 13 data points total. Are you sure that 2,680 kW from last January is their actual peak from that period?
Nancy, you're absolutely right. I went back and found the actual peak was 2,691 kW in March of the previous year, not January. The ratchet is working correctly. Thanks for making me double-check the data!
Good catch Nancy. That's why we always need to verify the actual peak demand month by month. Duke's billing is usually accurate, but their tariff language definitely could be clearer.
Duke's ratchet language has been a headache for years. I remember finding a billing error where they were applying it incorrectly. Ended up getting a client $18,000 back. The key is understanding their "rolling 12-month" definition.