Working a case in Little Rock where Entergy Arkansas was charging our client for transformer losses twice - once in the demand charge calculation and again as a separate line item. Schedule LGS-4 clearly states losses should be included in the base rate, not added separately. Took 8 months to get them to admit the error but recovered $127,000. Has anyone else seen Entergy doing this double-charging on transformer losses?
Entergy Arkansas tried to double-charge us on transformer losses
Helen - we see similar issues here in Alabama with Alabama Power. They try to add transformer loss charges on top of Schedule LPL rates when the tariff clearly includes losses in the energy component. These utilities bank on customers not reading the fine print. Great catch!
Helen, excellent work! We had a similar case with Pacific Power here in Oregon. They were adding "system losses" as a separate charge when Schedule 49 already includes transmission losses in the base rate. Recovered $89K over 36 months. These double-charging schemes seem to be more common than they should be.
Great recovery Helen! TEP here in Arizona tried something similar with their Schedule E-32 industrial customers. They were charging for "line losses" separately when the tariff specifically states all losses are bundled into the energy rate. Filed a complaint with the ACC and got it resolved quickly. Sometimes the threat of regulatory action works wonders.
Albert and Clyde - exactly! These utilities count on customers not understanding their own tariffs. Omar - good point about regulatory threats. I found that once I cited the specific tariff language and threatened an Arkansas PSC complaint, Entergy became much more cooperative. The refund check arrived within 45 days.
Helen - nice work! We've seen Kentucky Power try similar tricks with their Schedule IGS customers here in Lexington. They add "distribution losses" as a line item when it's already factored into the base distribution rate. These cases are usually slam dunks once you can show them their own tariff language.
Outstanding case Helen! Just wrapped up a similar situation with OG&E here in Tulsa. They were double-charging transformer losses on Schedule OL customers. The key was getting copies of the original rate design documents that showed losses were supposed to be embedded, not additive. Recovered $156K for our client.