Client got slammed with $18,400 in power factor penalties last month on their Schedule PL rate. Georgia Power claiming 0.72 lagging PF but client swears their capacitor bank was working fine. Anyone else seeing GP get more aggressive on PF enforcement lately? Looking at the meter data and something doesn't add up. Their demand was 890 kW but KVAR readings seem way off baseline.
Georgia Power hitting us with massive PF penalties - need advice
Derek, I've seen this exact issue with three Atlanta area clients in the past six months. GP changed their metering methodology in late 2011 and they're not being transparent about it. The penalty calculation seems to be using a different baseline than what's published in the tariff. I'd request a meter test immediately and get copies of all the interval data. Don't let them brush you off with "the meter is accurate" - demand specifics.
Had similar experience here in Birmingham with Alabama Power (same Southern Company family). Turns out their new Itron meters were reading reactive power differently than the old electromechanical units. Client ended up getting $31K in penalties reversed after we proved the capacitor switching wasn't being captured properly in the 15-minute intervals. Fight this hard - you'll likely win.
Same thing happening up here with Duquesne Light. Power factor penalties jumped 340% after they upgraded meters. File a formal complaint with the PSC if GP won't cooperate. In Pennsylvania we got relief by showing the utility changed measurement standards without proper notice. Worth documenting everything now before more bills come in.
Update - requested the meter test and GP is dragging their feet. Rachel, can you share which specific tariff section you used in your dispute? Looking at Schedule PL and the power factor adjustment language is pretty vague. Client is freaking out because March bill just came in at $22,100 in penalties.
Derek, reference Section 5.3 of the General Terms and Conditions. The key is proving they changed the measurement methodology without filing a tariff revision. Also check if they're applying the penalty to the entire billing period vs. just the intervals where PF dropped below 0.85. I've got template letters if you need them.
Rachel you're a lifesaver! Used your approach and GP backed down. Turns out they were applying penalties to periods when the plant was offline and capacitors were switched off. Got $34,200 credited back and they're reviewing their billing software. This forum saves me thousands in research time.