Southern California Edison just dropped their 2024 rate case asking for an 18.1% increase across all rate schedules. They're citing grid modernization and wildfire mitigation costs. I'm seeing tons of opportunities in their Schedule TOU-D-4-9PM filings - the demand charge calculations look off on several industrial accounts I've reviewed. Anyone else in SoCal seeing similar issues with their preliminary numbers?
SCE just filed for 18% increase - what are you all seeing?
Gordon, I'm up in NorCal but PG&E filed similar wildfire cost recovery requests last month. The devil is in the details with these environmental compliance adders - I found $47K in overcharges on a single manufacturing client when their Schedule E-20 demand multipliers weren't updated correctly. These utilities are rushing to implement new rate structures and making calculation errors left and right.
Same story here in Colorado with Xcel Energy. They got approved for a 12.8% increase effective last October and I've found billing errors on 60% of the commercial accounts I've audited since then. The new Schedule SG demand ratchet provisions are being applied incorrectly - saved one client $28K just by catching their peak demand billing mistake.
Great observations everyone. What I'm seeing across multiple territories is that these large rate increases are happening so fast that utility billing systems can't keep up. Just closed an audit in MLGW territory where their new industrial rate Schedule I-2 wasn't programmed correctly - client was overcharged $83K in six months. The key is getting in there early when these new rates roll out.
Randy's absolutely right about timing. Duke Energy Ohio implemented their rate increase in November and I've found systematic errors in their Schedule DP time-of-use calculations. The billing software wasn't updated to handle the new peak/off-peak windows correctly. One hospital client was being charged peak rates during off-peak hours - that's a $156K recovery so far.
Westar/Evergy here in Kansas just got their 15.2% increase approved for 2024. The new Schedule MGS large general service rate has a completely different demand charge structure. I'm finding that their billing department is still applying the old demand ratchet methodology on about 30% of accounts. Easy pickings if you know what to look for in the tariff language.
Alabama Power got their increase last year and I'm still finding errors from the transition period. Their Schedule LPM rate has new power factor penalty provisions that weren't being calculated right for the first three months. Saved a textile mill $41K by catching the overcalculated reactive power charges. These rate case implementations are goldmines.
Thanks for all the input - this confirms what I suspected. Going to focus my 2024 marketing on these recent rate increase territories. The combination of complex new rate structures plus rushed implementation seems to be creating perfect storm conditions for billing errors.