We've got a 120-unit apartment complex in Philly on PECO's R schedule that's been master metered since the 80s. The property manager just got hit with a $47,000 adjustment going back 18 months because they claim the demand readings were wrong. Has anyone dealt with PECO on master meter disputes lately? Their customer service is giving us the runaround and I'm not sure what tariff provisions apply to apartment buildings this size. The complex pays about $8,500/month normally so this is a huge hit.
PECO master meter billing nightmare - anyone else?
Phil, that sounds like a billing demand vs actual demand issue. We had something similar with Duke Energy here in Charlotte on a 200-unit complex. PECO uses the same type of meter registers as most utilities. Did they provide documentation showing the actual meter readings vs what they billed? In our case, Duke had been reading the meter wrong for two years - they were reading KW instead of KVA on the demand register. Cost the property owner $23,000 in back billing.
We see this all the time with Alabama Power on larger apartment complexes. The problem is usually in the multiplier. Master meters often have CT ratios that get misapplied during billing. Phil, check the meter nameplate and compare it to what's on your bills. PECO should have records of when any meter changes or programming updates were done. Also look at your rate schedule - some utilities have different demand billing for residential master meters vs commercial accounts.
Derek and Val, thanks for the input. I pulled 24 months of bills and the demand charges were definitely inconsistent month to month with no pattern. Some months showing 180 KW demand, others showing 340 KW for similar usage. The meter is a GE I-210 with 400:5 CTs. PECO claims they 'discovered' the error during a routine inspection but won't provide details on what exactly was wrong. Going to file a formal complaint with the PA PUC if they don't give us better documentation.
Phil, definitely file with the PUC. We had success with the Kentucky PSC on a similar LG&E master meter issue. The key is demanding the actual meter test records and any maintenance logs. Utilities are required to keep those records and provide them during disputes. Also check if your complex qualifies for any low-income or affordable housing rate protections - those sometimes limit back-billing periods. $47k is significant enough that you might want to hire an expert witness if it goes to hearing.
Had almost the exact same situation with Dominion Virginia Power last year on a 95-unit complex in Richmond. They claimed billing errors going back 20 months totaling $31,000. Turned out the meter reader was consistently misreading the demand dial - reading it as 10x what it should have been. We got it knocked down to 6 months back-billing and about $8,000 total. Document everything and don't let them rush you into accepting their numbers without verification.
Update: PECO finally admitted the CT ratio was programmed wrong in their billing system. They had it set at 800:5 instead of 400:5, so demand was being doubled. Got the back-billing reduced to 12 months and $18,500. Still fighting over interest charges but at least it's manageable now. Phil G. and Jack, your advice about the PUC complaint definitely helped - they took it seriously once I filed.
Glad you got some relief Phil. We've seen similar CT programming errors with FirstEnergy here in Cleveland. The problem is these master-metered apartments often get overlooked during meter upgrades and system changes. Property managers don't always catch billing discrepancies right away like commercial customers do. Worth setting up some kind of monthly bill analysis process to catch these things earlier.