Working on this medical facility audit in Tulsa and almost missed a huge opportunity. PSO was hitting them with power factor penalties but instead of showing up as a line item, it was buried in "miscellaneous charges" with just a cryptic code. I was focused on the obvious demand and energy charges and nearly overlooked $8,000 in annual penalties. Only caught it when I was doing my final review and noticed the misc charges seemed high compared to similar accounts. Anyone else run into utilities hiding PF penalties like this? Seems like they're getting more creative about obscuring these charges.
Anyone else ever miss power factor penalties hiding in "miscellaneous charges"?
Absolutely! FPL does this constantly. They'll bury power factor adjustments, late fees, and other penalties under generic line items. I've learned to scrutinize every single charge on the bill, no matter how small it seems. Had one client paying $600/month in "administrative fees" that were actually reactive demand penalties. The facility manager had no idea - they just paid the bill every month without questioning it.
RG&E does the same thing here in Rochester. Power factor penalties show up as "tariff adjustment" or something equally vague. I always request a detailed breakdown of any miscellaneous charges now. Can't tell you how many times I've found $300-500 monthly penalties that were completely fixable with basic power factor correction. The utilities know most customers don't understand these charges so they make them as opaque as possible.
This is exactly the kind of issue that drives me crazy about utility billing practices. MLGW at least has the decency to clearly label their power factor charges, but I've seen utilities across the country pull this kind of shell game. The key is developing a systematic approach to bill analysis. I literally go line by line through every charge, no matter how minor, and verify what each one represents. Takes extra time but catches these hidden penalties that can add up to serious money.
Otter Tail Power does this too, though not as aggressively as some of the bigger utilities. I made a spreadsheet template that breaks down every possible charge category so I don't miss anything. Power factor penalties, demand ratchets, seasonal adjustments - they all get their own line in my analysis. Caught a $400/month "system reliability charge" last year that was actually a poorly labeled power factor penalty.
Xcel Energy in Texas has gotten really sneaky about this. They'll combine power factor penalties with other adjustments under one line item. I started requesting the billing determinant detail for every account I audit. It's an extra step but shows exactly how each charge was calculated. Found $12,000 in annual PF penalties hidden this way on a food processing plant in Amarillo. Client had no idea they were even being penalized.
Thanks everyone - glad to know I'm not the only one dealing with this. The medical facility ended up installing power factor correction equipment and we eliminated the entire $8,000 penalty. Client was thrilled and couldn't believe they'd been paying it for three years without knowing what it was for. Really reinforced the importance of digging into every line item, no matter how insignificant it appears.
Black Hills Energy actually does a decent job labeling their charges clearly, but I've seen this issue with other utilities when I work outside South Dakota. The problem is that many facility managers just pay the bill without really understanding what each charge represents. That's where we add value - not just finding the obvious savings but uncovering these hidden penalties that can be eliminated with relatively simple fixes.
Eugene Water & Electric is pretty straightforward with their billing but I've encountered this issue working with clients served by PacifiCorp and Portland General. The worst part is when you miss it on the initial audit and have to go back to the client later. Now I spend extra time on the first review specifically looking for these kinds of buried charges. Better to be thorough upfront than embarrassed later.
This thread is a great reminder to never take bill formats at face value. Chugach Electric is generally pretty clear but I've seen other Alaska utilities bury charges in creative ways. The key lesson here is that thoroughness pays off - those extra 15 minutes spent analyzing every line item can uncover thousands in hidden savings. Thanks for starting this discussion Rick!
This has been a really valuable discussion. The main takeaway for me is that we can't trust utilities to make their billing transparent. Whether it's intentional obfuscation or just poor bill design, our job is to dig deeper and find those hidden costs. Every auditor should have a systematic process for reviewing miscellaneous charges - it's often where the biggest opportunities are hiding in plain sight.