This is unbelievable. Puget Sound Energy just billed my Seattle client $127,000 in power factor penalties for February 2025 under Schedule 40. The facility is a data center that's been running consistent 0.95+ power factor for three years with minimal penalties. Suddenly they're claiming 0.62 power factor for the entire month. The client's own Schneider ION meters show 0.94-0.97 throughout February. This has to be a massive billing error or meter malfunction. Anyone dealt with PSE on issues this big?
PSE - Massive Power Factor Penalty Error
David, that's insane. $127K penalty means they're calculating like the facility had terrible power factor on massive demand. Data centers typically have excellent power factor due to power supplies with active correction. Either their revenue meter failed spectacularly or there's a billing system error. File an emergency dispute immediately and demand they put the charges on hold pending investigation. PG&E has procedures for billing errors over $50K - PSE should too.
David, this sounds like the meter CT secondary got disconnected or damaged. I saw similar symptoms with Dominion when a squirrel got into a meter cabinet - current measurement went to zero but voltage stayed normal, making power factor calculation go crazy. The billing system interpreted zero current as maximum reactive load. Demand a field inspection of the metering equipment immediately. Don't let them claim it's a customer equipment issue.
Jennifer and Alice, excellent points. I've filed the emergency dispute and PSE agreed to hold the charges pending investigation. The account manager admitted the penalty amount "seems unusual" which is utility speak for "we screwed up big time." Alice, your CT disconnect theory makes sense - the kWh readings for February look normal but the kVAR readings are astronomical. Waiting for their field crew to inspect the meter installation.
David, while you're waiting for the inspection, demand copies of all the interval data for February. If there was a CT or meter issue, it should show up in the 15-minute data as sudden changes in reactive power. Also request the meter test records from the last calibration. Duke Energy has had issues with Elster meters giving false reactive readings after firmware updates. PSE might have a similar problem they haven't disclosed.
Mark, got the interval data and you're absolutely right. The reactive power readings spiked to impossible levels on February 3rd at 2:47 AM and stayed there for the entire month. Real power stayed normal the whole time. This is clearly a metering equipment failure. PSE's field crew confirmed a loose connection in the revenue meter's current transformer secondary circuit. They're processing a full credit reversal of the $127K penalty.
David, glad they found the problem quickly. That's exactly why we always recommend customers install their own monitoring equipment. The Schneider meters gave you the proof you needed to dispute the charges. Without that independent verification, PSE might have tried to claim it was a customer equipment issue. Always document everything when dealing with penalties this large.
This thread should be required reading for anyone doing utility audits. Independent metering saved this client $127K in bogus penalties. I'm sharing this with my manufacturing clients who are always complaining about the cost of power monitoring systems. The payback on one prevented billing error like this covers decades of monitoring equipment costs.
Excellent outcome, David. This case highlights why we always recommend comprehensive power monitoring for large commercial accounts. The investment in monitoring equipment pays for itself many times over when it prevents billing errors like this. I'm adding this example to my presentation for the upcoming AAUBA conference - it's a perfect illustration of why independent verification is crucial for power factor penalty disputes.