Share this as a cautionary tale about not understanding utility rate change procedures. Had a large office complex in Richmond that moved from Schedule GS-3 to Schedule LGP in January 2019. I was auditing 2020-2021 bills and noticed their demand charges seemed high for the LGP rate. Built a detailed analysis showing $156k in overcharges because I calculated what their bills should be using standard LGP tariff rates. Submitted the claim to Dominion and prepared for what I thought would be an easy win. Dominion responded explaining that this customer had negotiated a special contract rate when they switched to LGP, with higher demand charges but lower energy rates. The special contract was filed with the State Corporation Commission and completely legitimate. I had spent 80 hours analyzing bills against the wrong rate schedule. There was no overcharge - customer was saving money under their negotiated contract versus standard tariff rates. Anyone else miss special contract provisions?
Dominion Virginia Power rate change nightmare I created
Duke Energy Carolinas - got burned on a similar situation with a manufacturing client that had a curtailable service agreement I didn't know about. Their demand charges looked way too high compared to standard Schedule LGS rates. Spent weeks building spreadsheets showing massive overcharges. Duke politely informed me the customer was on a special curtailable rate with higher demand charges but guaranteed capacity credits during peak periods. The credits more than offset the higher demand charges, saving them about $200k annually. I was analyzing against the wrong baseline entirely. Now I always request copies of any special agreements or contract riders before starting analysis.
JEA here - special contracts are tricky because they're often not obvious from the bills themselves. Had a hospital that appeared to be on standard Rate CS-3 but was actually operating under an economic development agreement with different pricing. The bills showed the standard rate codes but there were monthly credits I didn't understand initially. Turned out JEA was applying economic development incentives that reduced their effective rates below published tariffs. What looked like billing errors were actually contractual benefits. Always ask customers if they have any special agreements with their utility.
Oncor/TXU Energy situation in Dallas - customer had signed up for a demand response program that modified their transmission charges. The bills showed higher than expected Oncor delivery charges but there were corresponding credits from ERCOT for demand response participation. I was looking at the Oncor charges in isolation without understanding the broader program benefits. Customer was actually saving money overall through the DR program. Lesson: understand all programs and agreements before analyzing individual bill components.
Idaho Power economic development rates - had a manufacturing expansion that qualified for special economic development pricing. Their bills showed rates that didn't match any published tariff schedule because they were under a custom economic incentive agreement. I initially thought it was a billing system error until Idaho Power provided documentation of the special contract approved by the Idaho Public Utilities Commission. The customer was getting below-market rates as an incentive for bringing jobs to the area. Always verify if economic development incentives apply.
Puget Sound Energy green power program - customer had enrolled in PSE's renewable energy option which added surcharges but provided renewable energy certificates. I was analyzing the surcharges as billing errors without understanding they were voluntary program costs. Customer was actually paying extra to support renewable energy development. The charges were legitimate and aligned with their sustainability goals. Don't assume every surcharge is an error - some are voluntary program enrollments.
Dominion Energy South Carolina interruptible service agreement - client appeared to be paying excessive demand charges until I discovered they were on an interruptible rate with reduced energy charges during off-peak hours. The higher demand charges were offset by significantly lower energy costs most of the year. Customer was saving about $180k annually under this arrangement. I was comparing their bills to standard tariff rates without understanding their interruptible service benefits. Always request copies of all service agreements and rate schedules.
SoCal Edison direct access customer - thought I found massive overcharges in distribution costs until I realized this customer was buying energy from a third-party supplier and only paying SCE for delivery. The bill components I was analyzing as "overcharges" were actually competitive supplier charges that had nothing to do with SCE's tariffs. Customer was saving money through direct access compared to bundled service. Understanding market structure is crucial before analyzing bills in deregulated territories.
Georgia Power time-of-use pilot program - customer was enrolled in an experimental TOU rate that wasn't in the standard tariff book. Their demand charges varied by time period in ways that didn't match any published rate schedule. I spent days trying to figure out what rate they were supposed to be on. Georgia Power explained it was a pilot program for large customers with special approval from the Georgia PSC. The billing was correct per their pilot program terms. Always ask about pilot programs or experimental rates.
Don, this is a great example of why due diligence on rate schedules and special agreements is so critical. I've seen auditors waste hundreds of hours analyzing bills against the wrong baseline because they didn't understand special contracts, pilot programs, or economic development agreements. The key is always asking the customer upfront about any special agreements, demand response enrollment, green power programs, or non-standard rate arrangements. Most customers know if they're on something other than standard tariffs, but they don't always think to mention it unless you ask specifically. Thanks for sharing this - it's a mistake that could save others a lot of wasted effort.