Working on a challenging case with PSE here in Washington. 84-unit apartment complex has been billed on Schedule 24 (General Service) for the past 3 years, but I think it should be on Schedule 25 (Large General Service) based on the demand levels. Monthly peak demand runs 180-220 kW consistently. The rate difference would save about $1,800/month. PSE is pushing back saying the account was "grandfathered" but I can't find any tariff language supporting that. Anyone dealt with PSE rate classification disputes before?
PSE Puget Sound Energy - master meter rate classification dispute
Vera, I've had similar issues with PSE in Seattle. "Grandfathered" isn't really a thing in their tariffs - if you meet the qualifications for a different rate schedule, they have to move you. Schedule 25 kicks in at 50 kW demand, so at 180+ kW you're definitely eligible. File a formal rate schedule change request with supporting demand data.
David, thanks for confirming the 50 kW threshold. I have 36 months of interval data showing consistent demand above 150 kW. PSE's argument is that the property "elected" to stay on Schedule 24 when it was first connected, but there's no documentation of any election. Sounds like they're making it up.
Vera, Randy here from Memphis. I've seen utilities try this "election" argument when they know they've been billing incorrectly. PSE's tariff should specify whether rate schedule changes are mandatory or optional based on usage characteristics. If it's mandatory above certain thresholds, they can't keep you on the higher-cost schedule just because someone supposedly "elected" it years ago.
Randy's exactly right. PSE Schedule 25 is mandatory for customers with demand over 50 kW unless they qualify for an exemption (which has specific criteria). The customer doesn't get to "elect" to pay higher rates. That would be like electing to stay on residential rates for a factory.
Found the smoking gun! PSE's own tariff states that Schedule 25 is "applicable to all general service customers with monthly maximum demand of 50 kW or greater." No mention of elections or grandfathering. Filed the formal dispute yesterday with 3 years of demand data. If approved, we're looking at about $65,000 in retroactive credits.
Nice work Vera! $65K makes it worth the fight. Make sure you ask for interest on the overpayments too - most utilities are required to pay interest on billing errors beyond 6 months or a certain dollar threshold.
Update: PSE approved the rate schedule change and credited $63,847 to the account! No interest unfortunately - apparently their tariff only requires interest on meter errors, not rate classification errors. Still a huge win for the property owner though.
Congratulations Vera! That's an excellent outcome. Cases like yours are exactly why property owners need professional auditing services - three years of overpayments that could have continued indefinitely if no one questioned the billing.