Finally closed a case that's been dragging on for almost two years with Madison Gas & Electric. Healthcare facility client was being billed for transformer losses at 2.5% on their Cg-4 rate schedule when their actual measured losses were only 1.8%. The utility kept insisting their standard loss factor was non-negotiable until I found an old PSC order from 2011 allowing case-by-case adjustments for customers with detailed metering data. Had to hire a consultant to do the transformer testing which cost $4,200 but we recovered $23,400 in overbilled losses plus ongoing monthly savings of about $400. Not the biggest recovery I've seen but these transformer loss cases are so rarely challenged that MGE didn't even have a process for handling the dispute initially.
Multi-year Madison Gas & Electric transformer loss dispute - $23K
Susan, that's exactly the kind of technical case that separates the real auditors from the bill checkers! Transformer losses are one of those charges that utilities love because most customers never question them. Did you have to get involved with the PSC or were you able to resolve it directly with MGE? I've got a similar situation brewing with Duke Energy Ohio but haven't decided whether it's worth the fight yet.
Cecilia, we were able to work it out directly with MGE once I escalated to their engineering department. The key was having that PSC precedent and the actual test data. Their rate department had never dealt with a loss factor challenge before so it took them months just to figure out their own internal process. I think utilities bank on customers not wanting to spend money on transformer testing, but for large accounts it can really pay off.
Great work Susan! These technical disputes require so much patience and documentation. I had a somewhat similar case with Entergy Mississippi on their transmission service charges where they were using outdated loss factors. Took 14 months but got a $18K settlement. The utility engineers are usually reasonable once you get past the customer service layer and can speak their language.
Nice persistence Susan! Question about the testing - did you use an independent consultant or did MGE have approved vendors? I'm dealing with Entergy New Orleans on a similar issue and they're being very picky about who can do the measurements. Seems like they're trying to make the process as difficult as possible.