Just closed the biggest case of my career - $340,000 recovery from Evergy (formerly Westar Energy) for improper power factor penalties on a grain processing facility. Client had been paying penalties for four years based on incorrect meter readings. The utility's CT ratios were wrong from the initial installation, making the power factor appear worse than it actually was. Took two independent power quality studies and a threat of legal action, but they finally agreed to the full refund plus interest. Anyone else seen metering errors this expensive?
Record recovery: $340K from Evergy on power factor penalties
Rachel, that's incredible! We Power here in Green Bay has had similar CT ratio issues, though nothing that expensive. The grain processing industry gets hit hard on power factor due to all the motor loads. How did you first suspect the metering was wrong? Was it inconsistent readings or did the client's internal monitoring show different numbers?
Paul, the client actually had their own power monitoring system that showed power factor consistently above 0.95, while Evergy was billing them for 0.87-0.89. That's what tipped me off that something was fishy. The independent studies confirmed the CT ratios were 400:5 instead of the required 600:5 for their service level. Four years of compounding errors added up fast at $6,000+ per month in penalties.
Outstanding work! Santee Cooper tried to blame "customer equipment" when we found similar discrepancies, but the metering was clearly their responsibility. The power factor penalty game is one of their favorite revenue enhancers. Rachel, did you have to bring in outside engineers or were you able to make the technical case yourself? These utilities love to dismiss our findings unless we have PE stamps on everything.
George, I brought in a consulting engineer from KC who specializes in power quality. Worth every penny of the $8,000 fee when you're looking at a $340K recovery! Evergy tried the usual "customer responsibility" argument until we showed them their own installation records proving they set the CT ratios. Once we had documented proof of their error, they couldn't wiggle out of it.
Rachel, fantastic case study! I'm dealing with a similar situation here in Wisconsin where WE Energies is claiming our client's power factor is terrible, but their own data doesn't add up. Your case gives me hope that these metering errors are more common than utilities want to admit. Did Evergy try to limit the recovery period or did they agree to the full four years upfront?