Found a significant error in PG&E's fuel adjustment clause calculation for one of my manufacturing clients. They've been applying Schedule E-19 fuel adjustments to usage that should be under Schedule E-20 rates. The difference in fuel adjustment factors is substantial - we're looking at roughly $12,000 in overcharges over 8 months. Has anyone seen similar classification errors with PG&E's automated billing systems?
PG&E fuel adjustment calculation error - $12,000 overcharge
Paul - that's a nice catch. We don't have PG&E here in Louisiana but Entergy has similar issues with their fuel rider calculations. The automated systems seem to struggle when customers have complex rate structures or multiple meters. Always worth double-checking those fuel adjustment factors against the published tariffs.
This is exactly why I maintain spreadsheets with all the current fuel adjustment factors for Xcel Energy here in Minneapolis. Their billing system has made similar errors - not $12K worth, but enough to matter. Paul, did you catch this through a line-by-line audit or was there something that tipped you off?
Christine - it was actually the client who first noticed their fuel adjustments seemed high compared to a similar facility they have in Arizona. That prompted me to dig deeper into the rate schedule classification. Turns out the billing system had them coded as E-19 when they should have qualified for E-20 based on their demand profile. Simple error but costly.
Paul, how did PG&E respond when you brought this to their attention? Xcel here in Colorado can be pretty good about corrections when you have solid documentation, but some utilities drag their feet on refunds. $12K is definitely worth fighting for.
Scott - initially they pushed back and claimed the classification was correct. Had to escalate to their commercial billing supervisor and provide detailed demand data showing the customer clearly qualified for E-20. Took about 3 weeks but they finally agreed to the refund and corrected the rate classification going forward.
Great outcome Paul. OG&E here in Oklahoma has made similar mistakes with their fuel riders. The key is having solid documentation and being persistent. These utilities process thousands of bills and errors slip through, but they'll usually make it right if you can prove the mistake clearly.
This thread is a good reminder for everyone to spot-check fuel adjustment calculations, especially for large commercial accounts. The dollars add up quickly when the factors are wrong. Paul, did they pay interest on the refund or just the principal amount?
Christine asks a great question about interest. Most utilities in my experience will pay interest on overcharge refunds if you ask for it specifically and can show the error was on their end. Worth pushing for on a $12K refund - that could be another $200-300 depending on the timeframe.