Got contacted by a local energy advisor here in the Phoenix area who wants to charge $500 to review my small client's APS bill and provide recommendations. Client is on Schedule E-32 TOU, about 85 kW demand, $2,800/month average bill. The advisor claims this is their standard "preliminary assessment fee" before any detailed audit work. This seems high for what sounds like a basic bill review. What do you all typically charge for initial assessments vs full audits?
Energy advisor wants to charge $500 just to review a simple APS bill - reasonable?
Alice, that does seem steep for a preliminary review. I typically do initial bill assessments for $150-250 depending on complexity, and that includes checking if they're on the right rate schedule and identifying obvious issues. $500 would be more appropriate for a full audit with detailed analysis and written recommendations. For an 85 kW account, there probably isn't $500 worth of potential savings to justify that upfront cost.
I agree with Kirk on the pricing. That's getting into full audit territory for what sounds like a simple rate schedule review. Here in Memphis with MLGW, I'd charge maybe $200 for a basic assessment of an account that size. The other red flag is calling it a "preliminary assessment fee" - sounds like they're planning to hit you with additional charges for any actual work. I'd get a detailed scope of work before agreeing to anything.
Randy's point about the "preliminary" language is spot on. I've seen advisors use that as a foot in the door to justify much higher fees later. For APS Schedule E-32, the analysis should be pretty straightforward - check demand timing, see if they'd benefit from E-33 or another rate option, maybe look at power factor. That's a couple hours of work max.