We've got three new junior auditors starting next month and I'm trying to develop a solid training program for demand charge analysis. Currently thinking of starting them with simple TOU rate schedules before moving into complex ratchet structures. What's worked best for you folks when teaching newbies about coincident vs non-coincident demand? FirstEnergy has some tricky tariffs here in Cleveland that seem to trip up even experienced auditors sometimes. Looking for any structured approaches or war stories about what NOT to do during training.
Training new hires on demand charge analysis - what's your approach?
Frank, I always start them with historical billing analysis first - let them see the patterns before diving into tariff interpretation. TVA has relatively straightforward demand structures compared to some utilities, but I make the trainees calculate everything by hand initially. No spreadsheet shortcuts until they understand the underlying math. Had one junior auditor miss a $47,000 ratchet billing error because he relied too heavily on automated tools without understanding the methodology.
Great topic. In Connecticut, Eversource's Schedule LM tariff is perfect for training - it has both coincident peak and facility demand components. I pair each new hire with a senior auditor for the first 6 months and require them to present their findings to the team before finalizing any recommendations. The presentation requirement forces them to really understand what they're analyzing rather than just running numbers. Also insist they visit at least 3 client facilities during training to understand how equipment actually operates.
One thing that's helped here in Youngstown - I created a "mistake library" of common errors I've seen over the years. Things like confusing contract demand with billing demand, missing transformer loss adjustments, or applying wrong seasonal rate periods. New auditors review real examples of these mistakes before they start working on live accounts. FirstEnergy Ohio tariffs have enough complexity that you really need to understand the nuances before diving in.
Derek makes a good point about the mistake library. Down here with Georgia Power, I've found that trainees struggle most with Schedule PL's demand ratchet provisions. The 80% of highest summer demand rule trips them up constantly. I now require new hires to manually verify at least 12 months of demand billing before they're allowed to use automated analysis tools. Tedious but necessary - caught a junior missing $23,000 in overcharges last year because he didn't understand seasonal ratchet mechanics.
All good advice here. One addition - I always have new auditors shadow me during client meetings for the first month. They need to understand how to explain billing errors to facility managers who aren't utility experts. Duke Energy's rate structures can be complex enough that even experienced engineers get confused. Teaching communication skills alongside technical analysis is crucial. Had a talented junior auditor who could find every billing error but couldn't explain findings in simple terms to clients.
Frank, if you're still developing your program, consider requiring trainees to complete a full audit on a "practice account" before working on real clients. I use historical data from a textile plant we audited last year - Entergy Louisiana Schedule LGS with complex demand provisions. Let them make mistakes on fake deadlines rather than real ones. Also recommend connecting with the local CUBA chapter for their junior auditor workshop series if available in your area.
Juan, that practice account idea is brilliant - definitely implementing that approach. Thanks everyone for the insights. Going to combine the hands-on calculations, mistake library, and shadowing recommendations. FirstEnergy's complexity should provide plenty of learning opportunities once they've mastered the fundamentals. Will report back on how the training goes.