Found what looks like a systematic error in how Entergy calculates cogeneration credits for a chemical plant in Louisiana. They're using last year's avoided cost rates instead of current rates, shortchanging the client about $2,800/month. The plant has a 5 MW natural gas turbine with heat recovery.
Cogeneration Credit Calculation Error
Carlos, that sounds like a billing system programming error. Entergy's cogen rates should update quarterly or monthly depending on the contract. Do you have documentation showing what rates they should be using versus what they're actually applying?
Warren's right about the update frequency. I dealt with a similar issue on a paper mill in Mississippi. Turned out Entergy's billing system wasn't pulling the current rate table. Once we showed them the discrepancy, they fixed it going forward and credited back 8 months.
Thanks for the encouragement. I have the rate schedules showing the correct avoided costs, so the documentation is solid. This could be a $25K+ recovery if they credit back the full error period.