Still kicking myself over this one from last year. Had a manufacturing client in Knoxville on TVA's Schedule MSB rate. I did my usual demand analysis and found some minor savings, maybe $3K annually. Client was happy but I had this nagging feeling I was missing something bigger. Turns out the facility had been misclassified since 2007 and should have been on Schedule MSD the whole time. The rate differential was huge - we're talking $40,000+ in refunds I completely missed because I only looked at current tariffs. Lesson learned: always pull historical rate schedules and verify classification from day one of service.
Missed a $40K refund because I didn't check historical tariffs
Ouch Terry, that hurts to read. I've made similar mistakes with Georgia Power. The worst part is when you have to call the client back and explain what you missed. At least you caught it eventually though. I always keep a checklist now of every tariff change in the past 10 years for each utility I work with. Takes more time upfront but saves the embarrassment later.
Been there done that. FirstEnergy changed their commercial rate structure in 2009 and I missed it on three different audits. Lost probably $60K in potential savings across those clients. Now I spend the first hour of every audit just reviewing tariff history. It's tedious but necessary. The utilities don't exactly advertise when they make these changes favorable to customers.
This is why I love this forum - we all learn from each other's mistakes. Had a similar issue with CL&P where they had this obscure Experimental Rate E-1 that was perfect for a 24/7 data center. Customer had been on standard commercial for 8 years. The monthly savings were $2,800 and we got a nice retroactive refund. Always worth digging through the entire tariff book, not just the obvious schedules.
Terry this resonates with me big time. SMUD has these weird transitional rates that only applied during certain years and I missed one that would have saved a client $25K annually. The facility manager was not happy when I had to admit the mistake six months later. Now I literally print out every single rate schedule and keep them in binders by year. Old school but it works.
The historical tariff trap gets everyone eventually. APS changed their demand billing methodology in 2008 and it took me two years to figure out how much money I was leaving on the table. Started going back and re-auditing all my old clients. Found mistakes on probably 40% of them. Expensive lesson but made me a much better auditor in the long run.
This thread should be required reading for new auditors. CPS Energy has some really complex rate structures and I learned the hard way that you can't just look at the current tariff book. Historical analysis is absolutely critical. Thanks for sharing Terry - we've all been there.
Just wanted to add that PSO has been notorious for quiet tariff changes. I keep a spreadsheet now tracking every rate modification by date. Takes about 10 minutes per audit but has saved me from missing several big opportunities. The key is building these checks into your standard process so you never skip them.