Working on an audit for a paper mill here in South Carolina and I'm having trouble understanding how Dominion Energy allocates certain charges between supply and delivery. Specifically the transmission cost recovery charge - is this a delivery charge or should it follow the supply? The tariff language is ambiguous and I need to make sure the competitive supplier isn't being double-charged.
Dominion Energy supply vs delivery allocation question
George, transmission charges are typically delivery charges since they're related to moving power over the grid infrastructure. But you're right that some utilities have murky allocation methodologies. I'd check with the SC PSC to see if they've issued any guidance on charge allocation for shopping customers.
Derek's correct - transmission is almost always a delivery function. However, some utilities try to allocate a portion to supply to reduce stranded costs. Check the settlement agreement when South Carolina opened to competition - it should specify how these charges get allocated between supply and delivery functions.