Auditing a steel foundry in Ohio on AEP's Schedule IMD. They own their primary transformer (69kV to 13.8kV) but I don't see any transformer ownership credit on their bills. The tariff mentions credits for customer-owned transformation equipment. Should they be getting a monthly credit?
Steel foundry transformer ownership credit question
Deborah, AEP definitely has transformer ownership credits but they're not automatic. Customer has to apply and get approved. Check if there's a signed agreement on file. The credit is usually based on avoided utility investment, typically $2-4 per kVA of transformer capacity per month.
Mike's right about needing an agreement. We helped a foundry in Columbus get this set up - took about 6 months to get approved but the credit was retroactive. For a large transformer it can be $8-12K annually. Definitely worth pursuing if they truly own the equipment.
Thanks Mike and Rosemary. Confirmed they own a 15 MVA transformer installed in 2010. No agreement on file with AEP. I'll help them apply - at $3/kVA that's about $45K/month in credits they've been missing!