Working on a large manufacturing client here in Indianapolis served by IPL at 12.47kV primary. They're paying Schedule LPP (Large Power Primary) but I'm seeing inconsistencies in how the primary discount is applied. The tariff shows a 2% discount for primary service but the billing seems to show different percentages month to month. Has anyone else dealt with IPL's primary voltage discount calculation? Their customer service can't explain why it varies from 1.8% to 2.2% across different months. This is a $45K monthly account so even small percentage differences add up quickly.
IPL Primary Service - Are We Getting Proper Discount?
Greg, I've seen similar issues with APS here in Phoenix on primary accounts. The discount percentage can vary based on how they calculate the "avoided distribution costs." Some utilities adjust the discount based on system loading or time of year. You might want to request a detailed breakdown of how they're calculating that 2% discount. In my experience, utilities sometimes apply different factors for demand vs energy charges, which could explain the variation you're seeing.
This is interesting timing - just finished an audit for a Seattle client on PSE primary service. Their Schedule 40 has a fixed primary discount of 1.5% but it's only applied to the distribution portion of the bill, not the entire amount. Maybe IPL is doing something similar? The key is understanding which bill components the discount applies to. Some utilities exclude transmission charges, others exclude generation. Have you looked at the tariff language around "applicable charges"?
David, that's exactly what I'm finding! The discount seems to only apply to certain line items. I'm going through 18 months of bills now to map out which charges get the discount and which don't. It's not clearly spelled out in Schedule LPP. The fuel adjustment charge definitely doesn't get discounted, but I'm unclear on the transmission riders. This lack of clarity in tariff language is maddening.
You guys are hitting on something I've been dealing with for years here in Cleveland with FirstEnergy. Their primary discount is supposed to be based on "avoided secondary distribution costs" but they never publish what those costs actually are. I've had to file formal complaints twice to get proper documentation. One thing to check - make sure they're not double-dipping by charging you for customer-owned transformer maintenance while also reducing the primary discount.
Frank makes a great point about transformer ownership. Here in Dallas, Oncor has specific language about customer-owned vs utility-owned transformers and how that affects the primary service classification. If the customer owns the transformer, they should get the full primary discount. But if it's utility-owned, some utilities reduce the discount since they still have transformer maintenance costs. Greg, does your client own their 12.47kV to 480V transformers?
Marcus, yes they own all their transformers - three 1500kVA units they purchased and maintain. So theoretically IPL should have zero secondary distribution costs for this account. I'm going to dig into the tariff definitions around "primary service" vs "secondary service" and see if there's any wiggle room IPL is exploiting. Thanks everyone for the insights, this gives me several angles to pursue.
Keep us posted Greg. I'd be curious to see what IPL's definition of "primary service" actually includes. In my experience, some utilities try to weasel out of giving full primary discounts by claiming the service is "nominally primary" but not "true primary" due to various technicalities. Document everything and don't let them off the hook with vague explanations.