Just wrapped up a 14-month battle with Duquesne Light here in Pittsburgh that resulted in a $127,349 refund plus interest. The issue was improper demand billing on Schedule GP-2 where they were applying ratchet provisions that shouldn't have kicked in until the third consecutive month. Their billing system was automatically flagging any demand over 85% of peak as subject to the 12-month ratchet, but the tariff clearly states it's only after three months of sustained high demand. Took four levels of appeals and a formal PSC complaint, but we finally got them to admit the error and audit their entire customer base. Anyone else dealt with Duquesne on demand ratchet issues?
Duquesne Light overcharged us $127K on demand - here's how we caught it
Wow Walt, that's a huge win! We've seen similar issues here in Texas with Oncor where their automated systems apply tariff provisions too broadly. The key is always getting them to admit it's a systemic issue, not just your client. Did they end up crediting other customers or just yours?
Great catch Walt! Duke Energy has similar language in their Schedule LGS tariff here in Charlotte. I've always wondered about the "three consecutive months" interpretation. Did you have to provide historical usage data to prove the pattern, or did they have access to that internally?
Marcus - they initially said it was just our client, but after the PSC got involved they admitted to reviewing "similar accounts." Never got confirmation on how many others were affected, typical utility CYA. Karen - we had to pull 36 months of interval data and create our own analysis showing the ratchet should never have applied. Their billing department didn't even understand their own tariff language until we walked them through it.
This is exactly why we always request the complete tariff calculation methodology from ComEd upfront. Their Schedule 6L has similar ratchet provisions that get misapplied constantly. Walt, did you charge hourly for the 14 months or negotiate a contingency fee structure?
Outstanding work Walt! PSO here in Tulsa has been pretty good about demand billing accuracy, but I've seen OG&E make similar mistakes on their industrial tariffs. The automated billing systems are only as good as the programmers who set them up, and most don't have deep utility experience.
Yuri - we went with a 25% contingency fee after the first 60 days when it became clear this was going to be a long fight. Client was happy to pay it given the recovery amount. Ed - you're absolutely right about the programmers. Half the time the utility billing folks don't even understand how their own system applies the tariff rules.
Walt, did Duquesne pay interest on the refund? Ameren here in St. Louis fought us tooth and nail on interest calculations last year. They claimed billing errors don't qualify for interest under Missouri regs, which was complete BS. We had to cite specific PSC precedent to get them to pay up.