Just caught something weird on a Dallas client's Atmos Energy bill. They're getting hit with what looks like a demand charge but it's buried in the distribution adjustment. Anyone else in Texas seeing similar? The tariff sheet is vague as hell and when I called Atmos they gave me the runaround. Client is paying an extra $340/month that I can't account for in the published rate schedule.
Gas demand charges buried in TXU rate schedule - anyone else seeing this?
Marcus, I've seen this with OG&E gas service here in Tulsa. They call it a "capacity reservation charge" but it functions exactly like an electric demand charge. Problem is most gas auditors don't look for it because we're trained to think gas is just commodity plus delivery. File a formal complaint with the Railroad Commission if Atmos won't explain it. That usually gets their attention real quick.
Ed's right about the hidden demand charges. I found one on a Nashville Gas bill last year - $180/month that shouldn't have been there. Turned out the customer was classified wrong in their system. What's your client's usage profile Marcus? High winter peak or steady year-round?
Terry, it's a manufacturing facility so pretty steady year-round, around 8,000 therms/month. That's what makes this charge so suspicious. Ed, thanks for the tip on the Railroad Commission - filing tomorrow. This is exactly the kind of BS that makes gas auditing so frustrating compared to electric.
We had Atlanta Gas Light try to pull something similar with a "system reliability charge" that was basically a demand charge in disguise. Took six months and a PSC complaint but we got $4,200 refunded to the client. The key is getting the actual tariff language and comparing it line by line to what they're billing.
Rachel makes a good point about line by line comparison. I use a spreadsheet template that breaks down every gas tariff component. Happy to share if anyone wants it. The Ohio utilities tried this crap for years until we started pushing back hard. Now they're much more careful about their billing accuracy.
Jim, I'd love a copy of that spreadsheet. We're seeing similar issues with Southwest Gas here in Phoenix. They've got so many adjustment factors and riders that it's impossible to verify without a systematic approach. The regulatory environment for gas is so much looser than electric - utilities get away with murder.
Update on my Railroad Commission complaint - Atmos backed down completely. Turns out the charge was a billing system error that affected about 200 commercial customers. Getting a $2,800 credit and they're fixing the tariff language. Sometimes you just have to be willing to fight. Thanks everyone for the advice!