Just completed CUBA certification. Ready to do my first audit. A property management company in Atlanta gave me 6 months of Georgia Power bills for a 120,000 sq ft office complex. I can see the demand charges on each bill but Im not sure how to systematically analyze them. What should I be looking for and in what order?
First demand charge audit ? where do I even start?
Derek ? congratulations on certification. Start with these steps in order: 1) Verify the rate classification ? is the account on the optimal tariff for its load profile? 2) Check the ratchet ? what was the highest peak in the last 12 months and is the ratchet inflating current demand charges? 3) Compare actual demand to connected load ? does the billed demand make sense for the building size and type? 4) Request interval data ? 15-minute demand data reveals when peaks occur and whether theyre controllable. Do these four things and youll find issues on most accounts.
Marcus covered the analytical steps. Ill add the practical steps: 1) Get the LOA signed immediately so you can request utility records 2) Request a minimum of 24 months of billing history ? 12 months isnt enough to see seasonal patterns 3) Request the meter configuration including CT ratio and billing multiplier 4) Request 15-minute interval data for at least 6 months 5) Get a copy of the applicable tariff from the utilitys website ? not a summary, the actual tariff filing.
Robert ? 24 months of billing history? The client only gave me 6 months. Should I go back for more?
Absolutely. Six months hides seasonal patterns. You need to see summer peaks, winter baseload, and any anomalous months. The LOA authorizes you to request billing history directly from Georgia Power. Submit the LOA and request 36 months if available. Georgia Power typically provides it within 2-3 weeks.
Derek ? one more thing: walk the building. Pull up the meter room, look at the electrical panels, count the CTs, note the meter number and match it to the bill. Physical inspection catches things that paper analysis misses ? wrong CT ratios, meters on the wrong accounts, disconnected circuits still being billed. My first audit found a meter reading the wrong tenants space because the meter labels were switched. $22,000 refund from a 10-minute meter room visit.
Barbara ? great advice about the physical inspection. I went to the building yesterday and found the meter room. Three meters for three tenant spaces. The CT ratios stamped on the CTs match the billing records so no multiplier error. But I noticed one meters demand reading was significantly higher than the other two even though the tenant spaces are similar size. Going to pull interval data to investigate.
Derek ? the demand discrepancy between similar spaces is exactly the kind of finding that justifies interval data analysis. Common causes: one space has equipment that cycles differently, the HVAC serving one space runs a different schedule, or the metering includes common area loads that should be distributed. The interval data will show when the peaks occur and whether theyre from the tenants load or something else.
Update on my first audit ? the high-demand meter was picking up the parking garage ventilation fans in addition to the tenant space. The fans werent supposed to be on that meter ? they were connected during the original construction and never corrected. Georgia Power confirmed the error. Tenant was overcharged $42,000 over the past 3 years. My contingency fee on the refund recovery is my first real auditing income. Thank you everyone for the guidance.
Dereks first audit journey is a perfect case study for new CUBAs. Notice the progression: start with billing analysis, request comprehensive utility records, physically inspect the metering, use interval data to investigate anomalies, and follow the evidence to the root cause. The $42,000 recovery came from a metering error that was only discoverable through physical inspection combined with interval data analysis. Neither approach alone would have found it. This is why the AAUBA methodology emphasizes both document analysis and site verification.