Got a manufacturing client here in Corpus Christi getting hammered by AEP Texas with $2,800/month power factor penalties under rate schedule LPS. We installed a 300 kVAR capacitor bank last fall but AEP is claiming it's not working properly. Their engineer says our PF is still averaging 0.87 but our power quality analyzer shows consistent 0.95-0.97. Anyone dealt with AEP Texas disputing customer correction equipment?
AEP Texas disputing our PF correction - need advice
Vivian, had something similar with Alabama Power down here. Sometimes their revenue meters have calibration issues with reactive power measurement. Request a meter test - in Alabama they have to do it within 30 days if you file a formal complaint. Cost us $500 for the test but saved $15,000 in disputed penalties when the meter was found to be reading 12% high on kVAR.
Check if AEP Texas is using the same measurement points for billing versus what your analyzer is measuring. Xcel here in Colorado measures at the service entrance but some facilities have transformers between the meter and the load. The PF can look great at the load but terrible at the meter point if you have transformer losses.
We had AEP Kentucky pull this same thing in 2015. Turned out their meter was averaging power factor over the entire billing period while our equipment was only correcting during production hours. The client was getting penalized for weekends and nights when the capacitors were offline but the building loads were still pulling reactive power.
Vivian, definitely push for the meter test like Albert suggested. Also document the phase relationship - we found an AEP meter in Wichita that was reading leading power factor as lagging due to a wiring error during installation. Cost the customer $8,400 in bogus penalties over six months before we caught it.