Working with a chemical plant that has a 2.5 MW cogen system feeding back to AEP Ohio's grid. They should be getting avoided cost credits of about $0.038/kWh but haven't received any payments in 14 months. AEP claims no interconnection agreement on file. Plant manager swears they signed everything back in 2011. Anyone dealt with missing cogen paperwork?
Cogeneration Credits Not Applied - $23K Lost Revenue
Priya, this happens more than it should. Utilities sometimes lose interconnection agreements during system upgrades or personnel changes. I'd start by requesting copies of all interconnection documents from both the utility and your client's files. If the original agreement is truly lost, you might need to re-execute, but back payments should still be recoverable.
Juan's right - document everything. Had a similar case with Consumers Energy where a paper mill's cogen credits stopped after a billing system conversion. Took 8 months to sort out but we recovered $31,500 in back payments. The key was having dated meter readings showing the excess generation.
Thanks Juan and Elmer. Found the original interconnection agreement in the plant's files - signed and witnessed in March 2011. Also have 14 months of excess generation data from their production meters. Looks like AEP just dropped the ball on their end.
Great detective work Priya. Make sure to calculate interest on those back payments too - most interconnection agreements include interest provisions for delayed payments. At 14 months and roughly $1,640/month in credits, that interest could add up to meaningful money.