Georgia Power implemented their new Schedule PL-1 rate for large industrial customers last month and the demand charge methodology completely changed. Instead of the old 12-month ratchet, they're now using a seasonal peak approach with different multipliers for summer vs winter months. I've got three manufacturing clients that are being billed incorrectly because the utility is still applying the old ratchet formula. Anyone else seeing this pattern?
Georgia Power Schedule PL-1 changes catching anyone off guard?
Greg, I haven't seen the PL-1 issues yet but Alabama Power made similar changes to their Schedule TOU-LPM rate around the same time. The seasonal demand billing is definitely causing confusion in utility billing departments. I found a $67K error on a paper mill account where they were applying summer demand rates in December. The billing clerks just didn't understand the new seasonal provisions.
We're seeing similar seasonal billing confusion up here with FirstEnergy. Their new industrial schedules have different demand charge structures for summer peak vs winter months. The problem is their billing system wasn't updated correctly so it's still using the old year-round demand ratchet calculation. Easy money if you catch it early.
Down here in Florida we're dealing with Gulf Power's new rate schedules after the NextEra merger. Their Schedule GS-2 demand billing has similar seasonal complexity and I've found calculation errors on 4 out of 6 accounts I've audited. The utility customer service reps don't even understand the new tariff language when you call to question the bills.
Entergy New Orleans just rolled out similar seasonal demand structures and it's a mess. Their Schedule ILF industrial rate has summer/winter demand differentials that nobody in their billing department seems to understand. I recovered $89K for a chemical plant just by getting their seasonal demand charges corrected. These utility mergers and rate restructures are creating audit goldmines.