Just wrapped up our biggest case to date - $847,000 recovery from Alabama Power for a manufacturing client. They had been incorrectly billed under Rate Schedule LPF (Large Power Fixed) since 2009 when they should have been on Rate Schedule LPT (Large Power Time-of-Use). The key was proving their load factor qualified them for the TOU rate despite what their account rep told them. Took 18 months of back-and-forth with regulatory filings, but we finally got full refund plus interest. Sometimes persistence really pays off. Anyone else dealt with Alabama Power's rate schedule maze?
$847K Recovery from Alabama Power - Rate Schedule Misapplication
Albert, that's incredible! I've been fighting with OG&E here in Oklahoma over similar rate classification issues. They seem to deliberately steer large customers to less favorable rates. What documentation did you use to prove the load factor qualification? I'm dealing with a client who should be on our TOU rate but OG&E claims their demand profile doesn't qualify.
Wow Albert, congratulations on that recovery! Here in PA we see similar issues with PPL and their rate schedules. The utilities definitely don't volunteer information about more favorable rates. Susan, for load factor documentation I've had success using 15-minute interval data over a 12-month period to calculate true load factors versus what the utility claims.
Susan - the smoking gun was their own interval data! Alabama Power had 36 months of 15-minute demand readings that clearly showed our client's load factor was consistently above the 65% threshold for LPT eligibility. Their billing department was using old demand data from 2008. Sylvia is right - you need that granular interval data to make your case bulletproof.
That's a monster recovery Albert! Here in Colorado with Xcel Energy, I've found they're usually pretty good about rate schedule optimization, but I still audit every large customer. The devil is always in the details with these tariff structures. Did Alabama Power fight the refund or were they cooperative once you presented the evidence?
Scott - they fought it tooth and nail initially. First they claimed the customer had waived rights to rate optimization (total BS). Then they argued the load factor calculations were wrong. Finally took a formal complaint to the Alabama PSC to get them to budge. Once the PSC staff started asking questions, Alabama Power suddenly became very cooperative and offered full settlement.
Albert, did you have to pay Alabama PSC filing fees for the formal complaint? Here in California the CPUC charges pretty hefty fees for formal proceedings. Sometimes the filing fee alone makes smaller cases uneconomical. But obviously with $847K at stake it was worth it!
Paul - Alabama PSC filing fee was $500 for the formal complaint, pretty reasonable. The bigger cost was legal representation since Alabama Power lawyered up immediately. But yeah, with that much money on the table it was definitely worth pursuing. This case taught me to always dig deeper into rate schedules even when the utility claims the customer is on the optimal rate.