Duke Energy charging emergency generator standby fees to nursing home?

Started by Eugene W. — 14 years ago — 1 views
We've got a 300-bed nursing home in Charlotte that's being hit with $2,800/month in emergency generator standby charges on their Duke Energy bill. The generator is required by state health dept regs but only runs during monthly tests and power outages. Is this a legitimate charge or should we be fighting this under the medical necessity exemption?
Eugene - I've seen Duke waive these for true medical facilities before, but you'll need to file a formal petition with documentation from the state health inspector showing it's required equipment. Had success with a similar case in Raleigh last year - saved the client $32K annually.
The key is proving it's not optional backup power but mandatory life safety equipment. Get a letter from the facility administrator and include the specific health code citations. Duke's tariff has language about essential service facilities.
Perfect - thanks Beth and Patricia. I'll pull the state regs and get that petition filed. The monthly test runs are documented so we should have a solid case.