Client is disputing power factor penalties from OG&E under Schedule PLM (Primary Large Manufacturing). They're claiming customer PF averaged 0.76 for May billing period, resulting in $6,800 in penalties on 850kW demand. Customer insists their power factor has been consistently above 0.85 since installing new capacitor banks in March. OG&E won't provide detailed power factor data, just says "proprietary metering algorithms." Anyone dealt with OG&E power factor disputes? Their tariff is vague about measurement methodology.
OG&E Schedule PLM power factor dispute - need advice
Susan, "proprietary metering algorithms" is not an acceptable answer for a $6,800 penalty. Under FERC and state PUC regulations, utilities must provide the methodology and data used for billing calculations when disputed. File a formal complaint with the Oklahoma Corporation Commission citing inadequate billing information. Also request all 15-minute interval data for power factor, kW, kVar, and kVA for the billing period. OG&E has to provide this under Oklahoma's utility customer rights regulations.
Randy's right about the formal complaint route. I've had success with Dominion disputes by getting the state commission involved. Also, get an independent power quality study done ASAP while disputing. Install a temporary PQ meter at the service entrance for 30 days to document actual power factor. If there's a significant discrepancy between your readings and OG&E's, that's strong evidence for your case. The cost of the study ($2,000-3,000) is easily justified against $6,800 monthly penalties.
One more thing - check if the new capacitor banks are properly sized and switched. I've seen cases where customers install caps but don't account for load variations, leading to over-correction during light load periods or under-correction during peak loads. If the caps are fixed rather than automatically switched, that could explain intermittent poor power factor that averages out badly over the billing period.