DTE Primary vs Secondary service - massive billing error discovered

Started by Gloria S. — 8 years ago — 1 views
Holy cow, folks. Just found a 6-year billing error at a steel fabrication plant in Detroit. DTE has been billing them on secondary rates (Schedule D6) when they're actually served at primary voltage (4.8kV). The rate differential is enormous - about $8,200 per month. Customer never questioned it because their bills were always high anyway. Anyone else seen DTE mess up primary vs secondary classification this badly?
Gloria - that's a huge find! DTE should have records of the service voltage from day one. The primary rate discount is typically 10-15% of total charges. With 6 years of overcharges at $8,200/month, you're looking at nearly $600K in potential recovery. Make sure to document the transformer ownership and get electrical drawings to prove primary service.
Randy, exactly what I'm thinking. The customer owns all transformers and has engineering drawings showing 4.8kV service since 2011. DTE's own records should confirm this. The weird part is their account setup shows 'Primary' in the service notes but they're on a secondary rate schedule. Looks like a billing system error that nobody caught.
Gloria - I had a similar case with DTE about 3 years ago at a food processing plant. Took 14 months to resolve but we got full recovery going back 3 years. DTE will likely argue about the refund period, so gather all the documentation now. Their billing department isn't great at admitting mistakes this big.
Thanks Arnold. Already started pulling together the evidence package. Customer is thrilled obviously - this could be their biggest cost savings initiative in years. Will keep everyone posted on how DTE responds.