Working with a Chicago manufacturing facility that's been taking service at 12.47kV for years. ComEd recently claimed the customer should own the step-down transformer and wants to charge them for "utility-owned equipment" going back 3 years. The customer insists ComEd told them years ago they'd maintain ownership. Anyone dealt with transformer ownership disputes? What documentation should we be looking for?
ComEd transformer ownership confusion
Yuri, I've seen this before with Xcel Energy in Minneapolis. The key is the original interconnection agreement and any amendments. Also check if there was ever a "contribution in aid of construction" payment - that usually determines ownership. ComEd's tariff should also specify ownership thresholds based on voltage and capacity.
Down in Tennessee, TVA is pretty clear about transformer ownership - customer owns everything on their side of the point of delivery. But in ComEd territory, I've seen situations where the utility maintained older transformers that should have been customer-owned. Check the meter location relative to the transformer.
Terry, good point about the meter location. The revenue meter is on the secondary side of the transformer, which would typically indicate customer ownership. But ComEd has been maintaining and replacing this transformer for over a decade. Wouldn't that create some kind of precedent or estoppel argument?
The maintenance history could definitely support your position. Indianapolis Power & Light got burned on a similar case where they'd been maintaining customer-owned equipment for years, then tried to retroactively charge for it. The commission ruled against them. Document every repair and replacement ComEd has done.
In Georgia, we've learned to always get transformer ownership in writing upfront. Georgia Power has specific forms for equipment ownership transfer. Has your customer been paying any kind of equipment charges or transformer rental fees over the years? That could indicate ownership structure.
Derek, no rental fees or equipment charges on any of the bills I've reviewed going back 5 years. Customer has been on straight commodity and delivery charges consistent with primary service. ComEd is basically trying to rewrite history here. I think we have a strong case for continued utility ownership.
Yuri, also check if the transformer is on the customer's property or utility easement. In Ohio, FirstEnergy typically retains ownership of equipment on their easements regardless of voltage level. Property boundaries can be crucial in ownership determinations.
Frank, the transformer is definitely on customer property, about 50 feet from the property line. But ComEd has maintained access rights and has never asked the customer to maintain or replace it. I'm documenting all the maintenance records we can find. This could end up before the ICC if ComEd doesn't back down.
Document everything, including any verbal representations ComEd made about ownership. In Connecticut, we had a case where CL&P tried to transfer transformer ownership retroactively and lost because they couldn't prove the customer was ever notified of the ownership change. Utilities can't just unilaterally change historical arrangements.
Sounds like ComEd is fishing for revenue. Alabama Power tried something similar a few years back - claiming customers should own transformers they'd been maintaining for decades. Most of those cases got resolved in the customer's favor once lawyers got involved. The utilities usually have weak documentation for ownership transfers.
Thanks for all the input everyone. I'm building a comprehensive case file with maintenance records, billing history, and property documentation. ComEd's position looks weaker the more we dig into it. Will keep you posted on how this develops.
Yuri, one more thought - check if ComEd ever depreciated that transformer on their books. If it shows up in their rate base filings, that's pretty strong evidence they consider it utility-owned property. Utilities can't have it both ways - can't depreciate equipment then claim the customer owns it.
Derek raises an excellent point about the rate base treatment. ComEd's FERC filings and ICC rate cases should show how they've been treating that transformer for accounting purposes. If they've been earning a return on it as utility property, their ownership claim becomes much harder to defend. That's often the smoking gun in these disputes.