Need some input from the group. I've got a client in El Paso served by EPE at 13.2kV on Schedule No. 32 (Large General Service - Primary). The tariff clearly states primary voltage customers receive a 3.5% discount on distribution charges, but I'm calculating that they're only receiving about 2.8% based on the actual bill amounts. This has been consistent across the last 8 months of bills, so it's not a one-time error. The account runs about $85,000 monthly so this discrepancy is costing them roughly $500 per month. Has anyone else worked with EPE and seen similar calculation issues with their primary voltage discounts?
El Paso Electric Primary Voltage Discount Calculation Error
Lou, this sounds like a systematic billing error that needs immediate attention. A 0.7% difference on an $85K monthly bill is definitely material. I'd recommend requesting a detailed billing analysis from EPE showing exactly how they're calculating the 3.5% discount. Sometimes utilities apply the discount to the wrong base amount or exclude certain components that should be included. Document everything and consider filing a formal complaint if they can't provide a satisfactory explanation. That $500 monthly difference adds up to $6,000 annually - worth fighting for.
I've dealt with similar issues here in Mesa with APS. Sometimes the discount percentage is correct but it's being applied to an incorrect base calculation. For example, they might be including transmission charges or other pass-through costs in the discount calculation when those should be excluded. Lou, have you verified that EPE is applying the 3.5% only to the true distribution portion of the bill? The tariff language around "distribution charges" can be tricky to interpret.
Christie, you're onto something. I've been digging deeper into the bill components and it looks like EPE might be excluding the "Distribution Demand Charge" from the discount calculation, even though it should logically be included as a distribution charge. The tariff says the discount applies to "applicable distribution charges" but doesn't clearly define which line items that includes. I'm preparing a formal inquiry with specific calculations showing the discrepancy.
Lou, I've seen this exact scenario with OG&E here in Oklahoma. The utility was interpreting "distribution charges" very narrowly and excluding demand-related distribution costs from the voltage discount. We had to escalate to the state commission to get clarification on the tariff language. The commission ruled that voltage discounts should apply to all distribution-related charges since the customer's higher voltage service reduces the utility's distribution system costs across the board, not just energy-related costs.
Susan's experience with OG&E is really helpful context. Lou, you might want to research if Texas has any specific regulatory guidance on primary voltage discount calculations. The state commission sometimes issues clarifications on tariff interpretation that can strengthen your case with the utility. Also, consider requesting billing data going back 24 months - if this has been a systematic error, the client could be entitled to a significant refund beyond just prospective corrections.