Major TOU billing error discovered with Alabama Power's Large Power Production (LPP) schedule. Their billing system has been applying summer peak hours (12pm-7pm) during off-peak months since March. Affected all LPP customers statewide - we're talking millions in overcharges. The error went undetected for 10 weeks because Alabama Power's quality control missed the seasonal transition programming. Has anyone else caught this yet?
Alabama Power Schedule LPP - TOU window programming error
Gwen, I haven't seen this specific error but it doesn't surprise me. Alabama Power's billing system updates have been problematic since they upgraded last year. What's the typical monthly overcharge per customer? Are they processing credits automatically or do customers need to file claims?
Albert - the overcharges range from $8,000 to $45,000 per month depending on customer size. One paper mill client was overbilled $127,000 over the 10-week period. Alabama Power is supposedly processing automatic credits but I'm recommending all my clients verify the calculations independently. The utility admitted fault but their credit methodology is questionable.
This is exactly why I audit every seasonal TOU transition for my Tennessee clients. TVA had a similar programming error three years ago that lasted 6 weeks. Gwen, are you finding that Alabama Power's interval data correctly shows the wrong rate application, or is the error only visible in the final billing?
Lorraine - the interval data clearly shows the incorrect TOU window application. That's actually how I caught it initially. The data showed peak rates being applied at 2pm in April when the schedule should have been off-peak all day. Alabama Power's own system was documenting the error in real-time.
Gwen, this is huge. Are other southeastern utilities having similar seasonal transition problems? I've got clients with facilities in Alabama and this could affect our analysis methodology going forward. How did Alabama Power respond when you presented the evidence?
Paula - Alabama Power was surprisingly cooperative once I showed them the interval data analysis. They confirmed the error within 48 hours and issued a public notice to all LPP customers. They're also implementing new quality control procedures for seasonal TOU transitions. I suspect other utilities will review their processes after this debacle.
This thread is gold. Gulf Power down here uses similar billing system architecture as Alabama Power. I'm going to audit all my TOU accounts for the past seasonal transition immediately. Thanks for sharing this case study, Gwen. Could save us all significant time and money.
Nadine's smart to check Gulf Power immediately. These regional utilities often use the same billing software vendors and similar programming. Georgia Power had a comparable issue in 2019 that I missed initially. Now I verify every seasonal transition within the first week.
Following this thread closely from Texas. CenterPoint Energy had a TOU programming error last summer that cost several clients thousands. The pattern seems consistent across utilities - inadequate testing of seasonal billing system updates. Are there any early warning signs we should watch for?
Vivian - the main warning sign is interval data that doesn't match the published tariff schedule. I now download interval data within 3-5 days of any seasonal transition and verify the TOU windows immediately. If there's a discrepancy, contact the utility's commercial billing department right away. Don't wait for the monthly bill.
Excellent advice, Gwen. I'm implementing this as standard practice for all my TOU clients. The potential savings from catching these errors early far outweigh the extra monitoring time. Has Alabama Power indicated if they'll compensate customers for the time spent identifying this error?
Donna - Alabama Power is only providing bill credits, no compensation for audit time or lost opportunity costs. Standard utility response unfortunately. But the credits are substantial - my paper mill client received $127,000 plus interest. The key is documenting everything thoroughly for potential future claims.
Outstanding work on this discovery, Gwen. This type of systematic billing error detection is exactly what our profession exists to prevent. I'm going to feature this case study in next month's AAUBA newsletter as a best practice example. Would you be willing to present this at our fall conference? The methodology and lessons learned would benefit all our members.