Been seeing a lot of client bills in Ohio with Rider DCR (Distribution Capital Recovery) showing up as substantial line items. FirstEnergy is pulling $3-8 per month on residential accounts, sometimes more on commercial. Anyone else dealing with this? The tariff language seems pretty broad - wondering if there's room to challenge some of these charges. My understanding is this covers "distribution system improvements" but that could mean anything.
FirstEnergy's Rider DCR - what's your take?
Frank, I've been wrestling with DCR charges for months now. Had a commercial client in Akron hit with $47/month on their Rider DCR. When I dug into the supporting documentation, half the "improvements" were routine maintenance that should be covered under base rates. Filed a complaint with PUCO last month - still waiting to hear back. The problem is these riders let utilities fast-track cost recovery without the scrutiny of a full rate case.
We're seeing similar issues with Duke Energy's infrastructure riders here in the Carolinas. Their Rider PF (Power Forward) is hitting some of our industrial clients for thousands per month. The thing that gets me is the automatic adjustment mechanism - rates go up quarterly with no public hearings. Makes our job as auditors much harder when the rates are constantly moving targets.
Derek makes a good point about the moving targets. In Virginia, Dominion's Rider U (Underground) has been particularly aggressive. I've got spreadsheets tracking the quarterly adjustments going back three years. The pattern shows they're front-loading costs then adjusting down later after they've collected the cash. Classic utility accounting trick. Document everything - these patterns become evidence in formal challenges.
Phil G., that's exactly what I suspected. The timing of these adjustments is too convenient. Jim's PUCO complaint is interesting - keep us posted on how that plays out. I'm thinking about coordinating with other auditors to file a joint complaint. Strength in numbers and all that. Anyone else in Ohio territory want to compare notes?
Count me in if you're organizing something. Eversource up here in Connecticut has their own version - Rider SCEF (Storm Cost Enhancement Factor). They've been loading storm recovery costs into this rider for years. I found charges dating back to storms from 2009 still being collected in 2012. The statute of limitations should have expired but nobody's watching. These utilities count on customer apathy.
This thread is gold. I deal with TVA power distributors here in Tennessee and we don't see these kinds of riders directly, but the wholesale rates have similar mechanisms. The fuel cost adjustments are brutal - sometimes 15-20% swings quarter to quarter. At least with TVA there's more transparency in the rate-setting process. You investor-owned utility folks are getting hammered.
Update on my PUCO complaint - got initial response today. They're asking FirstEnergy to provide detailed justification for the specific charges on my client's account. It's a start, but could take 6-8 months to resolve. Frank, definitely interested in joining forces on a broader challenge. The more accounts we can document, the stronger the case becomes.