Donna from Nashville. Picked up a client who runs a greenhouse operation and has been on an agricultural rate for six years. The rate is cheap but I am not sure the operation actually qualifies anymore — they added a retail storefront two years ago and about 40 percent of their square footage is now public-facing retail. Anyone dealt with mixed-use properties where the qualifying rate class might be in question?
Client on agricultural rate — should they be?
Victor from Baton Rouge. This is a gray area and it depends heavily on your utility's tariff language. Some define agricultural use by the primary activity, others by square footage or revenue percentage. You need to read the eligibility criteria carefully before you raise the question.
That is the thing — I am worried that if I raise it and the answer is they no longer qualify, I have just cost my client money instead of saving them money. Not sure I want to open that door.
Vince from Hartford. That is a real ethical question and I think the answer depends on your engagement scope. If you were hired to find overcharges and recover money that is one thing. If you were hired to ensure billing accuracy that includes errors in both directions.
Victor again. I would check the tariff language first without disclosing anything to either party. If the operation clearly qualifies you are done. If it is genuinely ambiguous I would have a private conversation with the client explaining the situation and letting them decide how to proceed.
Linda from Dayton. I agree with Victor. The client deserves to know the situation but you do not have to volunteer it to the utility unprompted. Inform your client, let them make an informed decision, and document that conversation.
That makes sense. I think I was treating it as a binary — either ignore it or report it. The middle path of informing the client and letting them decide is the right professional approach.
Todd from Portland. Worth also checking whether the agricultural rate was actually the right rate at the time the business started and whether the utility was ever notified about the retail expansion. Sometimes the client failed to update the utility and sometimes the utility simply never asked.