Just closed out a case that took nearly two years but resulted in our largest single recovery to date. Petrochemical facility in Corpus Christi had been misclassified on CenterPoint's POLR-L rate instead of the cheaper Industrial rate schedule. The difference was massive - we're talking $45K per month in overcharges going back to 2015. Total recovery was $890K plus interest. The crazy part is CenterPoint's own engineers admitted the facility qualified for industrial rates but claimed "billing precedent" meant they couldn't change it. Had to take this all the way to the Texas PUC to get resolution.
CenterPoint Energy rate classification nightmare - $890K recovery
Vivian, that's an incredible recovery! Alabama Power tried similar nonsense with a steel fabrication plant here - kept them on Schedule LPP instead of Schedule PL to protect revenue. $180K recovery over 30 months once I proved their continuous operation qualified for industrial classification. These utilities know exactly what they're doing when they misclassify large customers.
Outstanding work! I've seen Ameren Missouri pull similar tricks with manufacturing facilities. They love to keep industrial customers on commercial rates as long as possible. What evidence did you use to prove the facility qualified for industrial classification? Load factor, SIC code, or continuous operation requirements?
Elmer - combination of all three! Load factor was consistently above 70%, SIC code was clearly manufacturing, and they operated 24/7 except for scheduled maintenance. CenterPoint's own tariff language was crystal clear but they kept citing "historical precedent" like that trumped their filed rates. The PUC ruling was scathing - basically told CenterPoint to follow their own tariffs.
Vivian, how long did the PUC process take? I've got a similar case brewing with Duke Energy Ohio - chemical plant stuck on Schedule DP when they clearly qualify for Schedule IM. Duke keeps dragging their feet on rate reclassification despite obvious eligibility.
Cecilia - PUC formal complaint process took 8 months from filing to final order. Worth every day though! The key was having bulletproof documentation showing tariff compliance. Duke will probably settle once you file formal complaint - they hate the public scrutiny of PUC proceedings.
Great case study Vivian! Entergy Louisiana tried keeping a refinery on commercial rates for similar reasons. $650K recovery over 3 years when we got them properly classified as Schedule LGS-2. These utilities bank on customers not understanding rate classifications. That's exactly why our profession exists!
Incredible work Vivian! PPL here in Pennsylvania pulled similar shenanigans with a foundry - kept them on Schedule LP instead of Schedule LI for four years. $275K recovery once we proved industrial eligibility. The "billing precedent" excuse is just utilities protecting revenue streams they know they shouldn't have.
Vivian, cases like yours are exactly why I got into this business. Utilities counting on customer ignorance to pad their bottom line at the expense of legitimate rate classifications. That $890K recovery probably saved that petrochemical plant's competitiveness in the market. Excellent work pushing it all the way to the PUC - sets good precedent for future cases!