Found an interesting billing error at a plastics manufacturer in Michigan. DTE had them classified under NAICS 326199 (other plastics) instead of 326140 (polystyrene foam products). The difference puts them on a different industrial rate schedule that's costing them about $2,800/month extra. How common are NAICS classification errors and do utilities typically resist changing them?
NAICS code errors causing higher rates
Kenneth, I've seen this several times with manufacturing clients. Utilities often use broad NAICS codes when they should be more specific. DTE has been pretty good about corrections in my experience, but you need solid documentation of the actual manufacturing processes to support the change.
Good point Faye. I have the plant manager putting together detailed process documentation showing they're primarily manufacturing foam packaging products, not general plastics. Should that be sufficient for DTE to make the rate schedule change?
That should work. DTE usually wants to see production records, process flow diagrams, and maybe some product samples or spec sheets. Once they verify the primary business activity matches the more specific NAICS code, they're usually willing to make the change retroactively.