Working on a Baltimore Gas & Electric Schedule P demand billing issue where their ratchet calculation doesn't seem to match the actual interval data peaks. Customer is on a 12-month ratchet provision but BGE is applying what looks like an 18-month ratchet instead. The interval data shows current month peak of 850 kW, but they're billing demand at 1,240 kW based on some prior month that should have dropped off the ratchet calculation. Their Schedule P tariff clearly states 12 months but the billing doesn't match. Anyone dealt with BGE demand ratchet disputes recently?
BGE demand ratchet calculation vs actual interval peaks
Knox, I haven't worked with BGE specifically but Dominion Energy here in Richmond had similar ratchet calculation errors after they upgraded their billing system. The new software was pulling demand history from the wrong date ranges and extending ratchet periods beyond what the tariff specified. In our case, they were using 15-month data instead of 12-month for the ratchet baseline. Required escalation to their regulatory team to get it corrected and refunds processed.
This sounds like a billing system configuration issue. MLGW here in Memphis had problems when they migrated to their new customer information system - demand ratchet periods were getting miscalculated because the software was reading contract effective dates instead of actual billing period dates. The fix required them to manually review and correct hundreds of large commercial accounts. Document the specific months that should be in the ratchet calculation according to the tariff and compare against what they're actually using.
Knox, make sure BGE isn't including any estimated demand readings in their ratchet calculation. NorthWestern Energy up here in Helena had an issue where estimated interval data was creating artificially high demand peaks that stayed in the ratchet calculation long after they should have been corrected with actual meter readings. Always verify that all the monthly peaks in the ratchet period came from validated interval data, not estimates or temporary readings during meter issues.
Thanks for the input everyone. I think Sandra hit it - this looks like a billing system migration issue where BGE's demand ratchet calculation is pulling from the wrong date range. I've requested a detailed breakdown of which monthly peaks they're using in the current ratchet calculation. The 1,240 kW peak they're billing appears to be from 16 months ago, not within the 12-month tariff period. Will escalate to their commercial billing supervisor if they can't explain the discrepancy.
Knox, definitely push back on this one. Here at MLGW we've seen similar issues where billing system upgrades create ratchet calculation errors that can cost customers thousands per month. The key is getting them to show you exactly which 12 monthly peaks they're using and verifying those dates are within the correct ratchet period per the tariff. BGE should be able to provide a month-by-month breakdown of the ratchet calculation. If they can't or won't, escalate to the Maryland PSC if necessary.