I've been doing this for about a year now here in Louisville working mostly with LG&E accounts. Business is picking up and I'm turning down work because I can't handle the volume. Has anyone made the jump from solo to hiring help? My biggest concern is finding someone trustworthy who understands the technical side - these commercial rate schedules aren't exactly straightforward. Last month alone I found $23,000 in overcharges on a single manufacturing account that had been misclassified under the wrong rate schedule. How do you train someone on that level of detail?
When to hire your first employee vs staying solo?
Jack, I went through the same decision in Indianapolis about 6 months ago. Duke Energy territory keeps me plenty busy but I was working 70+ hour weeks. I hired a part-timer first - someone with accounting background who could handle the data entry and basic residential audits while I focused on the complex commercial stuff. Started them at $18/hour and it's been worth every penny. The key is having really detailed procedures written down for everything.
Have to agree with Greg here. I made the mistake of trying to hire someone full-time right away down in Charlotte. Duke Energy has so many different rate classes and the person I hired just couldn't grasp the complexity of demand charges and time-of-use rates. Ended up costing me a client when they missed a $4,800 error on a hospital's bill. Now I only hire people with utility experience or engineering backgrounds.
What about the liability issues though? I'm in Knoxville dealing with TVA rates and I worry about someone making a mistake that could cost a client thousands. Do you guys carry extra insurance when you have employees? My current E&O policy is just for me as a solo practitioner.
Terry raises a good point. Down here in San Antonio with CPS Energy accounts, I bumped up my coverage when I hired my first person. Added about $200/month to my insurance costs but worth it for peace of mind. Also make sure you have solid contracts that spell out exactly what the employee can and can't do. Mine can handle basic audits but anything over $5,000 in potential savings has to come through me first.
Good point on the insurance Angela. I also created a checklist system for my employee - every audit has to hit specific checkpoints before it goes to the client. Things like verifying meter multipliers, checking for proper rate classification, reviewing demand calculations. It's tedious but catches most errors before they become problems.
This is all really helpful. I think I'm going to start with a part-timer like Greg suggested. There's a woman who used to work for LG&E in their commercial billing department who might be interested. Having someone who already knows the rate schedules would be huge. Thanks for the advice everyone.
That sounds perfect Jack. Ex-utility employees are gold for this work. They know all the tricks and hidden fees that the utilities don't advertise. Just make sure she signs a solid non-compete so she doesn't take your methods and go solo herself!