AEP Texas had me spinning my wheels for weeks on what I thought was a billing error. Large manufacturing client in Corpus Christi was being billed on Schedule LU (large use) but I calculated they should be on Schedule LP (large power) based on their load profile. I built this whole case around $43,000 in potential annual savings from the rate schedule change. Submitted everything to AEP feeling confident about my analysis. Turns out the customer owns their transformer, which disqualifies them from LP service! It's right there in the tariff but I completely missed it. AEP explained it politely but I learned to always verify transformer ownership before recommending rate changes.
Learned the hard way: always check transformer ownership
Vivian, I made the exact same mistake with OG&E here in Oklahoma! Had a hospital that I was sure should be on Schedule LPP instead of Schedule LGS. Calculated $28K in annual savings and got the facility manager all excited. OG&E shot it down immediately - customer-owned transformer means no rate change possible. It's such a basic thing but easy to overlook when you're focused on load patterns. Now transformer ownership is the first thing I check on any potential rate change recommendation.
NV Energy has caught me on this too. Was working with a casino property in Vegas and thought they qualified for Schedule LGS-1 instead of their current LGS-2. The load profile and demand levels seemed perfect for the lower rate. Spent days building the analysis showing $52K in potential annual savings. When I called NV Energy to discuss, they reminded me that customer-owned transformers automatically exclude you from certain rate schedules. It's buried in the general provisions section that I had skipped over. Expensive lesson in reading the fine print!
SMUD has the same restrictions but they're clearer about it in their tariffs. I learned early on to always check transformer ownership status with any municipal utility before proposing rate changes. The savings can look huge on paper but if the customer owns the equipment, you're dead in the water. I keep a checklist now for rate change analyses and transformer ownership is item number one. Saves a lot of wasted effort and client disappointment.
Puget Sound Energy in Seattle taught me this lesson with a food processing plant. I was convinced they should be on Schedule 40 instead of Schedule 49 based on their demand profile. Built a whole presentation around $35K in savings and scheduled a meeting with the client. PSE crushed my dreams in about thirty seconds when they pointed out the customer-owned transformer issue. The client was understanding but I felt pretty foolish. Now I always verify utility ownership of all major equipment before making any rate change recommendations.