Sharing a win that almost got away from me. Client in Charleston was paying transmission service charges on AEP's Schedule TS-1 but the utility was applying the wrong voltage level multiplier for 22 months. The error was only $4,100 per month but it added up to $89,430 total. I almost dismissed it as too small to pursue but glad I didn't! Sometimes the little errors are the easiest wins because utilities don't fight them as hard.
AEP transmission charge error netted $89K - almost missed it!
Wanda, great catch! Those transmission charge errors are often overlooked because they seem small month-to-month. $89K is definitely worth the effort. How did AEP respond when you brought it to their attention? Did they require much documentation or was it pretty straightforward once you identified the voltage level error?
Randy, they were surprisingly cooperative. I think because it was clearly a billing system error with the voltage multiplier, not a gray area interpretation issue. They acknowledged the mistake within two weeks and cut the refund check within 60 days. Easiest $89K I ever made!
Wanda, this is encouraging for someone just starting out like me. I've been focusing on the big obvious errors but maybe I should pay more attention to these smaller transmission and distribution charges. What made you notice the voltage level multiplier was wrong?
Bernard raises a good point. Wanda, was this something you spotted during a comprehensive audit or did the client mention something that tipped you off? I'm working on developing better screening processes for catching these types of errors early in my analysis.