Avista PUD mistake cost them $1.2M - anyone else work Pacific Northwest?

Started by Sarah K. — 5 years ago — 8 views
Just closed the books on my biggest case ever. Data center client in Spokane was incorrectly classified as "General Service" instead of "Large Power" for almost four years. Avista's meter department had the load data showing consistent demand over 1MW but somehow billing never got the memo. The rate differential was enormous - we're talking $26K per month in overcharges. Final settlement including penalties and interest hit $1.247 million. Anyone else work with Avista or other PacNW utilities? Their processes seem particularly disjointed.
Sarah, congrats on the huge win! I work mostly with Pacific Power here in Oregon and yes, the coordination between departments is often terrible. I've seen similar disconnects where operations knows the real load profile but billing is working off outdated info. Did Avista fight you on this or acknowledge the error once you presented the evidence?
Clyde, they actually acknowledged the error pretty quickly once I showed them their own meter data. The smoking gun was their interval data clearly showing consistent demand spikes above 1.2MW during peak hours. What took forever was getting them to agree on the interest calculation and penalty structure. Their finance department kept trying to negotiate down the total.
Sarah, that's an incredible recovery! Data centers are goldmines for these types of errors because their load profiles are so consistent and predictable. I've got a similar case brewing with MLGW here in Memphis. Question - did you have to bring in outside experts to validate the load analysis or were you able to handle the technical review internally?
Randy raises a good point about expert witnesses. In my experience with Pacific Northwest utilities, having an independent engineer review the load data adds serious credibility to your case. The upfront cost is usually worth it when you're talking about seven-figure recoveries like this.