Three-Phase Billing Error Discovery

Started by Dale H. — 11 years ago — 1 views
Routine audit at a steel foundry in Ohio turned up something weird. AEP has been billing single-phase kWh instead of three-phase demand for 8 months. The meter reads are correct but they're applying the wrong rate schedule entirely. Anyone seen billing system errors like this? Plant is getting massive underbills - probably $40K+ short over the period.
Dale - That's a new one. Usually see the opposite problem where they overbill. How did you catch it? Was it just the rate schedule code in the billing system or actual metering configuration? AEP's going to want that money back with interest once they figure it out.
Albert - Caught it comparing the bill format to other similar accounts. This one was missing all the demand charges and power factor calculations. Metering is correct - 3-phase with proper CTs. Just a billing system glitch that applied residential rate structure. Client's freaking out about the potential back-billing exposure.
Ouch. Definitely notify AEP proactively - better to control the narrative than have them discover it during their own audit. They'll appreciate the honesty and might be more flexible on payment terms for the back-billing. Document everything about when you discovered it and how.