Need some backup on this one folks. Large commercial customer in Harrisburg got switched from Rate Schedule GS to GSE mid-billing cycle. PPL prorated wrong and double-charged demand for the overlap period. Customer paid $3,200 when it should have been $400 for that 8-day period. PPL claims their system auto-calculates and there's no error. Anyone dealt with PPL's proration logic on mid-cycle rate changes?
PPL proration disaster - $2,800 overcharge
Sylvia, that sounds like they're not prorating the demand charge properly. In Pennsylvania, when you have a mid-cycle rate change, the demand should be allocated based on which rate schedule was effective when the peak occurred. You can't just split it by days. Did they provide the interval data?
Walt's absolutely right about the demand allocation. I've seen similar issues with TVA rate changes here in Knoxville. The key is getting the load profile data to prove when the actual peak demand occurred. If it happened under the old rate, they can't charge it under the new rate structure.
Got the interval data this morning. Peak occurred on day 3 of the billing cycle, which was still under the GS rate schedule. The GSE rate didn't kick in until day 23. So they should be charging GS demand rates for the full month, not GSE. PPL is being stubborn about their "system logic" though.
File a complaint with the PUC. FirstEnergy tried to pull similar garbage here in Ohio and the commission sided with the customer. The demand charge follows the demand occurrence, not some arbitrary day-split formula. Document everything and cite the tariff language about demand measurement periods.
Frank's right about filing with the commission. Black Hills Energy here in South Dakota had to revise their billing system after similar complaints. The demand period is typically the entire billing cycle regardless of rate changes. Take screenshots of their online tariffs showing the demand definitions too.
Thanks for the encouragement. I've got all the documentation ready and the tariff is pretty clear about demand measurement periods. PPL's billing supervisor is supposed to call me back tomorrow. If they don't budge I'm filing with PUC that afternoon.
Keep us posted Sylvia. Duke Energy here in Charlotte fixed a similar issue for one of my clients last year, but only after I threatened the PUC complaint. Sometimes you have to escalate past the first level customer service to get results.
Update: PPL's billing supervisor admitted the error after I walked through the interval data with him. They're issuing a $2,800 credit on next month's bill. He claimed it was a "rare system glitch" but I bet this has happened to other customers who didn't catch it.
Great work Sylvia! That's exactly why our profession exists. I wonder how many small business customers got hit with similar errors and just paid without questioning. Ameren here in Missouri had a batch billing error last year that affected hundreds of accounts.
Nice outcome! You should document this case for future reference. PPL's "rare system glitch" probably isn't so rare. Having a proven case study makes it easier to challenge similar errors down the road.
Already writing it up Walt. Going to include copies of the interval data analysis and the tariff citations I used. This kind of documentation saves hours when you run into the same issue again.