Just finished an audit for a manufacturing client in Newark and found PSEG was double-billing the transmission enhancement charge. They were applying both the legacy TEP rider AND the new Zone J transmission rate on the same kWh. Talking about $18,000 over 14 months. Anyone else seeing this pattern with PSEG? The tariff language in Rider TEP is clear as mud but this has to be an error.
PSEG - Massive overcharges on transmission rider
Tony - I've seen similar issues with transmission cost recovery in New England. CL&P had a billing system glitch last year where they were stacking the regional network service charge with their own transmission cost adjustment. Took months to get it resolved. Did you check if PSEG filed updated tariff sheets with the BPU? Sometimes the billing department doesn't get the memo on rider consolidations.
This is why deregulated markets are a nightmare to audit. In Texas we at least have ERCOT keeping the transmission charges somewhat standardized. But when you get into the PJM footprint like New Jersey, every utility has their own interpretation of cost recovery mechanisms. Tony, did you escalate this through PSEG's commercial customer service or go straight to the BPU complaint process?
Angela - went through PSEG first. Their analyst admitted the error but said it would take 45-60 days to process the credit. The client is getting impatient so I may have to file with BPU anyway. What kills me is this affected dozens of accounts and PSEG acted like we were the first to notice. Either their other customers aren't paying attention or they're not reporting these systemic errors.
Had a similar transmission billing error with Ameren here in Missouri about 6 months ago. They were applying the SPP schedule 11 charges on top of their retail transmission rate. $25K error over two years. The problem is these utilities implement new transmission cost recovery mechanisms but don't always update their billing systems properly. Always check the math on any new riders or cost adjustments.
Pam raises a good point about SPP vs retail charges. Here in Tennessee we're still vertically integrated but I've worked on some Mississippi accounts where Entergy was doing something similar with their MISO transmission charges. The key is understanding whether you're paying wholesale transmission through the RTO plus retail delivery or if it's bundled. FERC Order 1000 made this more complicated, not less.
Ed's right about Order 1000 complicating things. We've got clients in Connecticut asking why their transmission charges went up 40% in two years. Between the regional transmission organizations, state transmission enhancement programs, and utility-specific infrastructure riders, it's become impossible to explain to customers. At least the generation side is somewhat competitive now.