Anyone else watching the MDU case in North Dakota? They're proposing major changes to Schedule 11 industrial rates that could create some serious audit opportunities. The new demand ratchet provisions look like they're going to catch a lot of customers off guard. I've already got three clients asking questions about how this will impact their bills starting in April. The transition period alone is going to be a goldmine for finding errors.
MDU Rate Case - Schedule 11 changes creating big opportunities
Anita, I've been following that case too from the TVA territory. Similar patterns emerging here with industrial rate restructuring. The key thing I'm seeing is utilities not properly communicating the billing determinant changes to customers. Had a client last week who thought they understood the new structure but missed the peak demand averaging provision entirely. Cost them $18,000 in the first quarter alone.
We're seeing the same thing down here with Duke Energy's latest filing. The regulatory language is so dense that even the utility's own customer service reps don't fully understand the new rate schedules. Found three billing errors in January alone on a single large commercial account - total recovery of $31,500. The transition periods are definitely where the money is.
This is exactly what happened in Alabama with Alabama Power's 2019 rate case. The new Schedule LPL provisions were so complex that customers were getting billed incorrectly for months. The utility had to issue credits totaling over $2.3 million across 400+ accounts. Always pays to dig deep into these rate restructurings during the first 6-12 months of implementation.
Great point Isaac. I'm putting together a checklist for clients affected by the MDU changes. Key items: verify demand billing determinants are calculated correctly, check that legacy rate riders are properly terminated, and watch for double-billing during the transition month. Anyone else have specific items they're tracking?
Add contract demand adjustments to that list Anita. National Grid up here in Rhode Island had similar issues during their last rate restructuring. Customers with special contract provisions weren't getting proper credits applied under the new tariff structure. Found one case where a manufacturing plant overpaid by $47,000 over six months because their negotiated demand credit wasn't being applied correctly.
Excellent thread everyone. I'm bookmarking this for reference. The key takeaway is that rate case implementations are audit goldmines if you know what to look for. The utilities are dealing with new billing systems, confused staff, and complex transition rules. Perfect storm for errors that benefit sharp-eyed auditors.