I've been auditing a large manufacturing client in Chicago and their ComEd delivery charges are running about 15% higher than what the tariff shows. This is on Schedule D-1 Large General Service. Has anyone else noticed delivery charge discrepancies with ComEd lately? The supply side looks clean but something is definitely wrong on the delivery calculation. Client is paying around $47,000/month in delivery charges alone.
ComEd delivery charges way off - anyone else seeing this?
Yuri - I've seen similar issues with IPL here in Indianapolis but not ComEd specifically. What's the demand level on that account? Sometimes the demand ratchets get applied incorrectly in deregulated markets. Are you seeing the overcharge consistently month to month or just certain billing periods?
Greg - demand is running 8500-9200 kW consistently. The overcharge appears every month going back 18 months. I think it's related to how they're calculating the Distribution Facilities Charge. The tariff shows $4.85/kW but they're billing closer to $5.60/kW. Math doesn't add up at all.
That's a significant variance. In Texas we see billing errors more on the supply side with REPs, but delivery charge errors definitely happen. Have you contacted ComEd directly or are you going through the retail supplier first? Sometimes the utility will only discuss delivery issues with the customer of record.
We had a similar issue with LG&E a few years back before they went deregulated. Turned out to be a system error in their billing software that affected about 200 large commercial accounts. The refund was substantial - around $280,000 for our client. Definitely worth pursuing this one Yuri.
Update: Filed a formal complaint with ComEd yesterday. Their customer service initially tried to brush me off but I had all the tariff calculations ready. They're escalating to their revenue protection department. Will keep everyone posted on how this plays out.
Good luck with that Yuri. Ameren here in St. Louis has been pretty responsive when we've found delivery charge errors. The key is having your math bulletproof before you approach them. They hate it when auditors are right but they usually do the right thing eventually.
Final update - ComEd acknowledged the billing error and issued a refund of $127,400 covering 18 months of overcharges. Turns out their billing system was applying an outdated demand charge rate that should have been updated 2 years ago. Great catch Yuri!