Question for the group: Knoxville Utilities Board has been alternating between 28-32 day billing periods for one of my commercial clients. The demand charges under their Schedule GSA-2 are calculated differently for each period length, but KUB isn't adjusting the rate properly. Anyone familiar with their tariff structure? Should demand charges be prorated for billing periods outside the standard 30-day cycle?
KUB 28-day vs 32-day billing - rate schedule confusion
Dale, I'm familiar with KUB's setup since I'm also in Knoxville. Their GSA-2 schedule specifically states that demand charges are calculated on a 30-day basis regardless of the actual billing period. Check section 3.4 of their rate schedule - they're supposed to prorate demand charges for periods outside 28-32 days. Sounds like their billing department isn't following their own tariff.
Thanks Terry, that's exactly what I needed. Found section 3.4 and you're absolutely right. KUB has been charging full demand rates for 32-day periods but not adjusting for 28-day periods. The error amounts to about $400/month in overcharges. Time for a conversation with their commercial billing team.
Good catch Dale. KUB is usually pretty reasonable about correcting these errors once you point them out. If they give you any pushback, mention that you'll need to file a complaint with the Tennessee Regulatory Authority. That usually gets their attention quickly.