Found a small boutique in downtown Austin paying residential rates for 18 months. They're pulling about 2,800 kWh/month which should clearly be on small commercial. Austin Energy has been billing them at $0.112/kWh instead of the correct commercial rate. Anyone else seeing this regularly with small retail?
Small retail on residential rate - how common?
Sandra, this is probably our #1 finding in small commercial. Especially retail spaces that used to be apartments or condos. The utility just never switched the rate class when the occupancy changed. I'd say 30% of our small retail audits find this issue.
Ed's right - we see this constantly. Hair salons, nail shops, small restaurants. The savings add up fast too. That boutique is probably overpaying $200-300/month. Always check the rate code first thing on small commercial accounts.
Great catch Sandra. This is exactly why we focus on rate classification as the top audit priority for small commercial. The utility doesn't automatically switch rate classes when businesses move in, so it falls through the cracks constantly. Make sure to check their certificate of occupancy date to maximize the refund period.