Just wrapped up an audit on a Chevron station in Baton Rouge on Entergy Louisiana. Found three separate errors on one account. First, they were on a small general service rate but their usage justified the large general service rate which has a lower per-kWh charge above 1,000 kWh. Second, the meter multiplier was set at 40 when it should have been 20 — classic CT ratio error that doubled their recorded demand. Third, they were paying sales tax on the entire bill including the demand charges, which Louisiana exempts from sales tax for commercial accounts. Total recovery was $22,400 going back 30 months plus about $870/month going forward. The station owner couldn't believe it.
Gas station audit — surprising amount of errors
Gas stations are great because they have relatively simple electrical systems but the bills are large enough to make errors significant. The canopy lights, pumps, and the convenience store all add up. I did a cluster of five Shell stations in Houston on CenterPoint and found rate class errors on three of them. The owners were all part of the same franchise group so one LOA covered all five locations. Easy $31,000 in combined refunds.
Gas stations, convenience stores, quick-service restaurants — these small commercial accounts are the bread and butter for auditors who are just getting started. The bills are typically $2,000-$8,000/month, the errors are common, and the owners are usually grateful because nobody has ever looked at their utility bills before. The key is volume. One gas station audit might net you $5,000 in fees. But if you can get a franchise group with 10-20 locations, suddenly you have a $50,000-$100,000 engagement with very repetitive work because the same errors tend to appear across multiple locations.
Randy that's exactly what happened. The Chevron owner put me in touch with his brother who owns four more stations in the Baton Rouge area. Same errors on two of them. This is turning into a nice little niche.