Fellow auditors, I'm dealing with a nasty power factor penalty situation with TXU Electric here in Dallas. Client got hit with $47,000 in penalties over 18 months on their Schedule GS-3 rate. The facility has been running the same equipment for 5 years with no issues, then suddenly they're claiming PF below 0.85 consistently. I suspect the metering equipment was misconfigured during a recent upgrade. Anyone dealt with similar issues with TXU or Oncor? The penalty calculation seems to be using the wrong baseline period.
TXU Electric - Power Factor Penalty Nightmare
Marcus, I've seen this exact scenario with APS out here in Phoenix. During meter upgrades, the CT ratios sometimes don't get programmed correctly for power factor measurement. The revenue meters might be accurate for kWh but completely wrong for reactive power calculations. You need to request the actual meter programming parameters and compare them to the original installation specs. Also check if they changed from electromechanical to solid-state metering - the measurement algorithms can be different.
Sarah's right about the CT programming. ComEd had a similar issue here in Chicago back in 2010 - they rolled out new Elster meters and the power factor penalties spiked across multiple accounts. Turned out the reactive power measurement was using 15-minute intervals instead of the tariff-required monthly averaging. The difference in penalties was huge - some customers saw 300% increases overnight. File a formal dispute and demand interval data going back to before the meter change.
Marcus, what's the actual measured power factor they're claiming? If it's dramatically different from historical performance, that's your smoking gun. Duke Energy here in Charlotte has admitted to meter programming errors when we can show sudden unexplained changes. Also check the tariff language - TXU's Schedule GS-3 should specify the measurement methodology. Some utilities measure PF at the time of peak demand, others use average over the billing period.
Derek, they're claiming 0.78 to 0.82 range when historical was consistently 0.88-0.92. The facility hasn't changed operations at all. I've requested the interval data but TXU is dragging their feet. The tariff does specify monthly averaging but I suspect they're calculating based on instantaneous readings during peak periods. Sarah, how did you get APS to admit the CT programming error? Did you need an independent meter test?
Marcus, we had to threaten to file with the Arizona Corporation Commission before APS would do a proper investigation. They eventually sent a metering technician who found the VT ratio was programmed as 480:120 instead of 4800:120. Simple decimal point error that threw off all the reactive power calculations. Cost the client about $23,000 in bogus penalties over 14 months. Push hard for that interval data - if they won't provide it voluntarily, cite the Texas Public Utility Commission regulations requiring meter data access.
This thread is gold. PG&E pulled similar shenanigans here in Fresno last year. After three months of disputes, they quietly credited back $18,500 in power factor penalties and blamed a "software update error." Never got a clear explanation but the penalties disappeared. Document everything and don't let them stonewall you with technical jargon.
Update: Just got word that Marcus won his dispute with TXU. They found the exact same CT ratio programming error Sarah mentioned. $41,000 credit issued. Nice work everyone!